Regular Session - July 13, 1996

                                                                 
9846

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         9                       ALBANY, NEW YORK

        10                         July 13, 1996

        11                           1:43 a.m.

        12

        13

        14                       REGULAR SESSION

        15

        16

        17

        18       SENATOR JAMES W. WRIGHT, Acting President

        19       STEPHEN F. SLOAN, Secretary

        20

        21

        22

        23











                                                             
9847

         1                      P R O C E E D I N G S

         2                      SENATOR BRUNO:  Mr. President,

         3       it's now Saturday. Could you call us to order

         4       and proceed with the day.

         5                      ACTING PRESIDENT WRIGHT:  The

         6       Senate will come to order.  Please rise for the

         7       Pledge of Allegiance.  Ask the gallery to rise.

         8                      (The assemblage repeated the

         9       Pledge of Allegiance to the Flag. )

        10                      In the absence of clergy, may we

        11       bow our heads in a moment of silence.

        12                      (A moment of silence was

        13       observed. )

        14                      Secretary will read the Journal.

        15                      THE SECRETARY:  In Senate,

        16       Friday, July 12th. The Senate met pursuant to

        17       adjournment. The Journal of Thursday, July 11th,

        18       was read and approved.  On motion, Senate

        19       adjourned.

        20                      ACTING PRESIDENT WRIGHT:  Hearing

        21       no objections, the Journal stands approved as

        22       read.

        23                      Presentation of petitions.











                                                             
9848

         1                      Messages from the Assembly.

         2                      Messages from the Governor.

         3                      Reports of standing committees.

         4                      Reports of select committees.

         5                      Communications and reports from

         6       state officers.

         7                      Motions and resolutions.

         8                      SENATOR BRUNO:  Mr. President.

         9                      ACTING PRESIDENT WRIGHT:  Senator

        10       Bruno.

        11                      SENATOR BRUNO:  It's my

        12       understanding that we voted on Calendar 1451

        13       yesterday within this last hour, and Senator

        14       Markowitz was not here.  Had he been here, he

        15       would have been voting to abstain on that vote;

        16       so I would like the record to show that on

        17       behalf of Senator Markowitz.

        18                      ACTING PRESIDENT WRIGHT:  The

        19       record will so reflect.

        20                      SENATOR BRUNO:  And, Mr.

        21       President, there being no further business to

        22       come before the Senate presently, I would move

        23       that we stand at ease until 9:30 a.m.











                                                             
9849

         1                      ACTING PRESIDENT WRIGHT:  Senate

         2       shall stand at ease until 9:30 a.m.

         3                      SENATOR CONNOR:  Party vote in

         4       the negative.

         5                      SENATOR BRUNO:  Party vote in the

         6       affirmative.

         7                      ACTING PRESIDENT WRIGHT:  Call

         8       the roll.

         9                      (The Secretary called the roll. )

        10                      THE SECRETARY:  Ayes 36, nays 20,

        11       party vote.

        12                      ACTING PRESIDENT WRIGHT:  The

        13       Senate stands at ease until 9:30 a.m.

        14                      Senator Paterson.

        15                      SENATOR PATERSON:  Mr. President

        16        -- Mr. President.

        17                      ACTING PRESIDENT WRIGHT:  Senator

        18       Paterson.

        19                      SENATOR PATERSON:  There will be

        20       a Minority Conference at 9:00 a.m., in the

        21       Minority Conference Room.

        22                      ACTING PRESIDENT WRIGHT:  There

        23       will be a Minority Conference in the Minority











                                                             
9850

         1       Conference Room at 9:00 a.m.

         2                      (Whereupon at 1:15 a.m., the

         3       Senate stood at ease. )

         4                      (The Senate reconvened at 9:36

         5       a.m.)

         6                      ACTING PRESIDENT SPANO:  The

         7       Senate will come to order.

         8                      Senator Bruno.

         9                      SENATOR BRUNO:  Since we have

        10       been standing at ease, I'd like to request that

        11       the Majority members join me in Room 332 for a

        12       Majority Conference, and for us to reconvene

        13       session at about 10:15.

        14                      ACTING PRESIDENT SPANO:  Senator

        15       Paterson.

        16                      SENATOR PATERSON:  Mr. President,

        17       we had a sterling Minority Conference at 9:30

        18       and we're going to have another one, and that

        19       will be immediately in the Minority Conference

        20       Room.  Tickets are available.

        21                      ACTING PRESIDENT SPANO:  Minority

        22       and Majority Conferences in the respective

        23       conference rooms.  Senate will reconvene at











                                                             
9851

         1       10:15.

         2                      (The Senate stood at ease from

         3       9:38 a.m. until 10:34 a.m.)

         4                      SENATOR BRUNO:  Mr. President,

         5       can we at this time ask for an immediate meeting

         6       of the Finance Committee in Room 332.

         7                      ACTING PRESIDENT KUHL:  There

         8       will be an immediate meeting of the Senate

         9       Finance Committee in the Majority Conference

        10       Room, an immediate meeting of the Senate Finance

        11       Committee in the Majority Conference Room, Room

        12       332.

        13                      ACTING PRESIDENT KUHL:  Senate

        14       will come to order.

        15                      SENATOR BRUNO:  Mr. President, is

        16       there anything at the desk that we should be

        17       taking care of at this time?

        18                      ACTING PRESIDENT KUHL:  Got a

        19       couple of substitutions, Senator Bruno.

        20                      SENATOR BRUNO:  Thank you, Mr.

        21       President.

        22                      ACTING PRESIDENT KUHL:  Secretary

        23       will read.











                                                             
9852

         1                      THE SECRETARY:  Senator Bruno

         2       moves to discharge from the Committee on Rules

         3       Assembly Bill Number 11326 and substitute it for

         4       the identical Third Reading Calendar 1774.

         5                      Senator Goodman moves to

         6       discharge from the Committee on Transportation

         7       Assembly Bill Number 3027-C and substitute it

         8       for the identical Third Reading Calendar 1146.

         9                      ACTING PRESIDENT KUHL:

        10       Substitutions are ordered.

        11                      Senator Bruno, that brings us to

        12       the calendar.

        13                      SENATOR BRUNO:  Mr. President,

        14       can we, on today's calendar, take up Calendar

        15       572, Bill 6052-B.

        16                      ACTING PRESIDENT KUHL:  On

        17       Calendar Number 70, regular calendar for the

        18       day, the Secretary will read Calendar Number

        19       572, by Senator DeFrancisco, Senate Print

        20       6052-B.

        21                      THE SECRETARY:  Calendar Number

        22       572, by Senator DeFrancisco, Senate Print

        23       6052-B, an act to amend the Real Property Tax











                                                             
9853

         1       Law.

         2                      ACTING PRESIDENT KUHL:  Is there

         3       any Senator wishing to speak on the bill?

         4       Hearing none, Secretary will read the last

         5       section.

         6                      THE SECRETARY:  Section 3.  This

         7       act shall take effect immediately.

         8                      ACTING PRESIDENT KUHL:  Call the

         9       roll.

        10                      (The Secretary called the roll. )

        11                      THE SECRETARY:  Ayes 59.

        12                      ACTING PRESIDENT KUHL:  The bill

        13       is passed.

        14                      Senator Bruno.

        15                      SENATOR BRUNO:  Mr. President,

        16       can we at this time take up Calendar Number

        17       1607.

        18                      ACTING PRESIDENT KUHL:  Secretary

        19       will read the title to Calendar Number 1607, by

        20       Senator Velella.

        21                      THE SECRETARY:  Calendar Number

        22       1607, by Senator Velella, Senate Print 4714-A,

        23       an act to amend the Executive Law, in relation











                                                             
9854

         1       to obtaining nationwide criminal history

         2       records.

         3                      SENATOR DOLLINGER:  Mr.

         4       President.

         5                      ACTING PRESIDENT KUHL:  Senator

         6       Dollinger, did you wish to be recognized?

         7                      SENATOR DOLLINGER:  Is this

         8       before us?

         9                      ACTING PRESIDENT KUHL:  Yes.

        10                      SENATOR DOLLINGER:  Could I just

        11       have a quick explanation, if I can.

        12                      ACTING PRESIDENT KUHL:  Senator

        13       Velella, an explanation of Calendar Number 1607

        14       has been asked for by Senator Dollinger.

        15                      SENATOR DOLLINGER:  Mr.

        16       President.

        17                      SENATOR VELELLA:  No.  This will

        18       allow the city of New York to gain access to

        19       federal and other states' criminal history

        20       records when they process employees'

        21       applications.  Right now they're not authorized

        22       to do anything except check the BCI reports of

        23       New York State.  This will allow them to check











                                                             
9855

         1       neighboring states and to check the federal

         2       records, particularly in the area of people who

         3       are employed for services that they provide to

         4       children, so it will give them access to that

         5       criminal history.

         6                      SENATOR DOLLINGER:  Mr.

         7       President, just one question to cut to the

         8       chase.  Why doesn't it apply to the entire

         9       state?

        10                      SENATOR VELELLA:  Why does it?

        11                      SENATOR DOLLINGER:  Why doesn't

        12       the bill apply to the entire state?

        13                      SENATOR VELELLA:  I believe that

        14       the state now has that permission, but I know

        15       the City does not.  I know the City has

        16       requested this, but my understanding is state

        17       agencies -- and, unfortunately, I don't have the

        18       file here -- state agencies can do a check with

        19       the F.B.I. and do do a check with other states.

        20       The city of New York did not have that permis

        21       sion to do that for their employees.

        22                      SENATOR DOLLINGER:  Again through

        23       you, Mr. President, just one other quick











                                                             
9856

         1       question.  Is this -- does this apply to private

         2       employers that want to get this data?

         3                      SENATOR VELELLA:  No, no.  This

         4       governs the city of New York employees.

         5                      SENATOR DOLLINGER:  All right.

         6       Thank you, Mr. President.

         7                      Just on the bill briefly.  I

         8       think this is a good idea, and I would like to

         9       see it expanded to include private employers.

        10                      ACTING PRESIDENT KUHL:  Is there

        11       any other Senator wishing to speak on the bill?

        12       Hearing none, the Secretary will read the last

        13       section.

        14                      THE SECRETARY:  Section 2.  This

        15       act shall take effect in 60 days.

        16                      ACTING PRESIDENT KUHL:  Call the

        17       roll.

        18                      (The Secretary called the roll. )

        19                      THE SECRETARY:  Ayes 59.

        20                      ACTING PRESIDENT KUHL:  The bill

        21       is passed.

        22                      SENATOR BRUNO:  Mr. President,

        23       can we at this time take up Calendar Number











                                                             
9857

         1       1774.

         2                      ACTING PRESIDENT KUHL:  Secretary

         3       will read Calendar Number 1774.

         4                      THE SECRETARY:  Calendar Number

         5       1774, substituted earlier today, by the Assembly

         6       Committee on Rules, Assembly Print 11326, an act

         7       authorizing the creation of a state debt.

         8                      ACTING PRESIDENT KUHL:

         9       Substitution is ordered.  Secretary will read

        10       the title.

        11                      Senator Marcellino, an

        12       explanation of Calendar Number 1774 has been

        13       asked for.

        14                      SENATOR MARCELLINO:  This

        15       particular bill is an act authorizing the

        16       creation of a state debt in the amount of

        17       $1,750,000,000 in relation to creating a Clean

        18       Air/Clean Water Bond Act for 1996.

        19                      This is to provide money for the

        20       preservation, enhancement, restoration,

        21       improvement of the state's environment and to

        22       provide for state assistance payments for such

        23       purpose and providing for the submission to the











                                                             
9858

         1       people of a proposition or question therefor to

         2       be voted upon at the general election in

         3       November of 1996.

         4                      Basically this puts the bond act

         5       before the people.

         6                      ACTING PRESIDENT KUHL:  Senator

         7       Paterson.

         8                      SENATOR PATERSON:  Good morning,

         9       Mr. President.

        10                      ACTING PRESIDENT KUHL:  Good

        11       morning.

        12                      SENATOR PATERSON:  Senator

        13       Marcellino, would you yield for a question?

        14                      ACTING PRESIDENT KUHL:  Senator

        15       Marcellino, do you yield?

        16                      SENATOR MARCELLINO:  It will be

        17       my pleasure to, sir.

        18                      ACTING PRESIDENT KUHL:  Senator

        19       yields.

        20                      SENATOR PATERSON:  Senator, might

        21       I have a slightly more -- I'm sorry, Senator,

        22       what I'm really looking for is a little more of

        23       a breakdown on where some of the monies are











                                                             
9859

         1       allocated?

         2                      SENATOR MARCELLINO:  The -- this

         3       particular bill, Senator, is designed to place

         4       this before the people.  This does not have the

         5       full spread of the money to be paid out.  That

         6       bill is before the Finance Committee now and is

         7       on the agenda at the present time.  It should be

         8       in here to take that up at a later point.  I

         9       could give you a brief general synopsis in a

        10       fairly rough form of where and just what some of

        11       the projects are.

        12                      We have a category for safe

        13       drinking water, for example, which includes

        14       about $355 million to do projects relative to

        15       water quality and safe drinking water.

        16                      We have some clean water projects

        17       designated to the Hudson River, for example, $25

        18       million associated with that, Hudson estuary

        19       protection projects.  Long Island Sound clean-up

        20       is worth about $200 million applied to that.  An

        21       awful lot of work to be done on the Sound, as

        22       you may know, as well as the Hudson River.

        23                      Lake Champlain improvements are











                                                             
9860

         1       about $15 million for Lake Champlain.  For

         2       Onondaga Lake clean-up about $75 million.  The

         3       New York harbor estuary improvements projects

         4       come up with about $25 million.  The Great Lakes

         5       protection project is approximately $25 million,

         6       Finger Lakes clean-up another $25 million.

         7                      Now, in some other water

         8       categories, we could have the state facilities

         9       environmental compliance, $25 million; the

        10       Peconic estuary and South Sound estuary $30

        11       million, waste water treatment improvement and

        12       municipal flood control projects in smaller

        13       communities.  We've debated the infamous beaver

        14       growth in this chamber many, many times and

        15       there was some language in the Governor's

        16       proposed budget to relieve the problem of

        17       beavers from damming up waterways that flood

        18       farm land. Rather than go through the trapping

        19       and the killing of these animals, which the

        20       beaver, by the way, as many of you know or

        21       should know, is the state animal -- don't ask me

        22       why -- this particular amount of money, about

        23       $50 million, will allow for alternative means to











                                                             
9861

         1       help people to avoid flooding created by beavers

         2       creating dams which back up water in particular

         3       areas, so we'll have alternate means of avoiding

         4       the flood and relieving the flooding problem

         5       using duct work and maintenance action, so that

         6       we can protect roadways and farm land from

         7       flooding as a result of beaver damming.  There

         8       is also some money in here which could be

         9       applied to the trapping and relocation of these

        10       animals.  Some suggested locations that we've

        11       had in recent minutes was Prospect Park and

        12       Central Park where there are lakes which could

        13       hold the beavers, and we feel that would be

        14       good.  However, we don't feel the beavers would

        15       be safe enough in these particular localities,

        16       but we're looking into that.

        17                      I'm wondering who's paying

        18       attention out there.  Senator Seabrook, you

        19       should back me up on that one.

        20                      We have some dam safety projects,

        21       the dam that protects water, not the other kind

        22       of damn.  These projects are about $15 million

        23       because in some areas of our state, some of our











                                                             
9862

         1       dams are in need of repair and work and there is

         2       monies to maintain these necessary facilities.

         3                      We have some small business

         4       environmental compliance assistance projects to

         5       the tune of about $30 million dollars.  This

         6       would allow those small businesses that comply

         7       or come under the compliance with, I believe,

         8       the environmental protection or the

         9       environmental -- the Clean Air Act and whatever,

        10       they can apply and receive assistance in getting

        11       that help to refit their facilities to meet

        12       emissions control standards.  So this would help

        13       small businesses in a large manner all over the

        14       state.

        15                      We have some open space programs

        16       worth about $250 million in this particular

        17       proposal; land acquisition approximately $150

        18       million; state parks another $50 million,

        19       municipal parks another $50 million, designed to

        20       upgrade the state parks and enhance them and in

        21       some cases create them where necessary where we

        22       have the areas.

        23                      With respect to solid waste











                                                             
9863

         1       initiatives, we allow $175 million in this

         2       proposal.  Fresh Kills we've talked about that.

         3       The Governor, the Mayor of the City, all the

         4       people on Staten Island, I'm sure, would be very

         5       pleased, and anyone who lives down wind of Fresh

         6       Kills would be very pleased to see this

         7       particular facility closed and eliminated once

         8       and for all.  It also might help some of the

         9       stuff that floats across to other states which

        10       gets away.

        11                      There is real Adirondack landfill

        12       protection money, about 15 million -- $50

        13       million, excuse me, to that particular area.

        14       There is some recycling capital programs,

        15       approximately $50 million, to help and assist in

        16       developing recycling.  Recycling, as you know,

        17       for those of us who are into the system and into

        18       the process, is the means, many of us believe,

        19       to help eliminate a lot of solid waste that is

        20       currently going into the waste stream.  If we

        21       can recycle and reuse, we take some pressure off

        22       some natural resources. The reusing of this

        23       material, alternate uses for recycled materials











                                                             
9864

         1       such as plastics which can be used for bulkhead

         2       ing, for bench creation, facilities that will

         3       not diminish.  We don't have to use wood.  It

         4       means we don't have to chop down trees and we're

         5       not looking to take away our forest products and

         6       stuff like that.  So this can be extremely

         7       useful.  There's a lot of work being done on

         8       that.

         9                      Environmental restoration

        10       relative to "brownfields", we've known for a

        11       long time there's approximately $200 million in

        12       "brownfields" protection.  This is, I think, a

        13       vital project.  The money will be related and

        14       the projects will be related using Superfund

        15       standards so we're going to hold them to decent

        16       standards and currently accepted standards, not

        17       less standards.  I know there was some fear in

        18       the environmental community that the standards

        19       would be lessened and watered down.  We're

        20       using, and we're going to hold people to

        21       Superfund standards to make sure that this is

        22       not the case.  But the "brownfields" program can

        23       be very useful, my colleagues, because this will











                                                             
9865

         1       take pressure off our "greenfields", the

         2       so-called pristine sites which are out there

         3       and, if we can revitalize and regenerate in an

         4       old manufacturing plant that has been lying

         5       fallow for years and been an eyesore in the

         6       community, that garbage that was left because

         7       nobody wants to deal with it which is on the

         8       corner and has a graffiti site, nothing but

         9       rubble and an eyesore in the neighborhood, and

        10       nobody wants to take it on because they're

        11       afraid of what might be below the surface and

        12       what the environmental impact to their economic

        13       well-being would be if they took over the site,

        14       if we can get them to do that in an environment

        15       ally safe way, develop a contract with these

        16       people, protect them from liability so that they

        17       don't take on more, unless they lie to us or

        18       they try to misrepresent the clean-up but get

        19       that site cleaned up and back on the tax rolls

        20       in the use that it was meant to be used or the

        21       way it was meant to be used, we've done an

        22       environmentally solid and sound thing, not to

        23       mention an economically sound thing for the











                                                             
9866

         1       community because that -- that site likely had a

         2       tax certiorari, had its taxes reduced.  If they

         3       hadn't been paying any taxes now once cleaned up

         4       and put back on the tax rolls it becomes a

         5       positive for the community rather than an eye

         6       sore and a negative.  Too many of these sites in

         7       the community and a community goes down the tube

         8       because nobody wants to drive through a

         9       neighborhood or open up a store in a

        10       neighborhood or open up a shop or buy a home in

        11       a neighborhood where your downtown has eyesores

        12       and empty buildings and empty industrial sites.

        13                      So the "brownfields" proposal we

        14       think is important to propose.  It is something

        15       that the Governor is very interested in.  It is

        16       something that I've had legislation on.  I feel

        17       very interested in this, and I think it's a very

        18       important project all over the state.  We, in

        19       the northeast, have sites that are just, you

        20       know, ideal for this kind of project.

        21                      Air quality projects, $230

        22       million for clean fuel, moving into the range of

        23       electric cars, alternate fuels, and the like.











                                                             
9867

         1       Small business environmental compliance projects

         2       around $30 million, school and coal conversion

         3       projects about $125 million to help schools, and

         4       I'm sure many of them in the city of New York

         5       are still burning coal. The high school I used

         6       to teach in is still burning coal the way it did

         7       when it was built some 70 years ago.  This will

         8       help them.  This money can be applied to these

         9       places to turn to safer, cleaner alternate fuels

        10       and lessen the impact on the resources of an

        11       already strapped city and already strapped

        12       municipalities and school districts throughout

        13       the state of New York.  This is a positive on

        14       that.

        15                      Senator, I've given you an

        16       extensive rundown, but it's not as complete as

        17       I'd like.  The bill that will come out of

        18       Finance, if it hasn't shortly, will have more

        19       information on that and more details but I hope

        20       I've provided you with some information.

        21                      SENATOR PATERSON:  Thank you,

        22       Senator.

        23                      ACTING PRESIDENT KUHL:  Senator











                                                             
9868

         1       Mendez, why do you rise?

         2                      SENATOR MENDEZ:  Senator, Mr.

         3       President, I wonder if Senator Marcellino would

         4       yield for a question?

         5                      ACTING PRESIDENT KUHL:  Senator

         6       Mendez, I did have a list running of other

         7       members who had indicated earlier they wanted to

         8       face the issue, if you don't mind take those in

         9       order.

        10                      Senator Dollinger.

        11                      SENATOR DOLLINGER:  Mr.

        12       President, I'll yield to Senator Mendez.

        13                      ACTING PRESIDENT KUHL:  Senator

        14       Waldon.

        15                      SENATOR WALDON:  If the learned

        16       gentleman would yield to a question.

        17                      ACTING PRESIDENT KUHL:  Senator

        18       Marcellino, would you yield to an question from

        19       Senator Waldon?

        20                      SENATOR MARCELLINO:  Be my

        21       pleasure to, Mr. President.

        22                      ACTING PRESIDENT KUHL:  Senator

        23       yields.











                                                             
9869

         1                      SENATOR WALDON:  Senator, in your

         2       preparation to submit this for consideration,

         3       was there any dialogue with people in Queens

         4       County as to the places that would be designated

         5       to benefit from this proposal?

         6                      SENATOR MARCELLINO:  I am sure

         7       the people who prepared the bill -- this came

         8       out of the Governor's office, as you well know,

         9       in conjunction with the Senate Majority Leader's

        10       office, and in conjunction with the staff of the

        11       Environmental Conservation Committee.

        12                      We reached out -- I know the

        13       Governor reached out to many groups. I am sure

        14       the mayor of the city of New York was one of

        15       those individuals reached out to and who had

        16       input into the money that was needed and the

        17       kind of projects that would be beneficial to the

        18       areas throughout the state.

        19                      I am not familiar with one or an

        20       individual maybe, the borough president of

        21       Queens, I don't know a specific person from

        22       Queens was talked to.

        23                      SENATOR WALDON:  Would the











                                                             
9870

         1       gentleman yield again?

         2                      ACTING PRESIDENT KUHL:  Senator

         3       Marcellino, do you continue to yield?

         4                      SENATOR MARCELLINO:  Surely.

         5                      ACTING PRESIDENT KUHL:  Senator

         6       continues to yield.

         7                      SENATOR WALDON:  Thank you, Mr.

         8       President.  Thank you, Senator Marcellino.

         9                      Am I to assume from the statement

        10       then that the areas of the Rockaways, Cambria

        11       Heights, Rosedale, Queens Village, Laurelton,

        12       Springfield Gardens, Rochedale Village, St.

        13       Albans, parts of Jamaica, South Jamaica, and a

        14       touch of Green Oaks are not intended to be

        15       excluded from this proposal?

        16                      SENATOR MARCELLINO:  No, sir, you

        17       should not draw that conclusion at all.  You

        18       mentioned some of the areas that I grew up in

        19       and had a lot of fun playing ball in.  St.

        20       Albans and Flushing are my old stamping grounds

        21       and I grew up in the Rockaways, so I certainly

        22       would not allow those sites and those

        23       communities not to have some input. The schools,











                                                             
9871

         1       for example, could be impacted with respect to

         2       conversion from coal-burning furnaces to oil,

         3       some of the older facilities in those

         4       communities.

         5                      The south estuaries, the south

         6       shore and north shore estuary work, the Sound

         7       work along the waterways and the beaches will

         8       apply and can apply and can be connected,

         9       especially the Rockaways, to some of the water

        10       act here.  The "brownfields" approach certainly

        11       impacts that community. There are many "brown

        12       field" sites that would qualify in my estimation

        13       for monies under the "brownfield" proposals here

        14       in that community.

        15                      I'm very familiar with Spring

        16       field Gardens High School and the surrounding

        17       communities. They could benefit greatly from the

        18       sites and from the money here.  The proposals

        19       that were raised and put in this particular bond

        20       act were done in conjunction with the Conference

        21       of Mayors and Municipal Supervisors so, no, by

        22       no means should you feel that these communities

        23       were excluded in any way, shape or form.











                                                             
9872

         1                      SENATOR WALDON:  Thank you, Mr.

         2       President.  Thank you, Senator.

         3                      SENATOR MARCELLINO:  You're

         4       welcome.

         5                      ACTING PRESIDENT KUHL:  Senator

         6       Mendez, did you wish to speak?

         7                      SENATOR MENDEZ:  No.

         8                      ACTING PRESIDENT KUHL:  Senator

         9       Mendez waives.  Senator Dollinger had indicated

        10       a willingness to want to discuss the bill.

        11                      SENATOR DOLLINGER:  Mr.

        12       President, I will waive my request.

        13                      ACTING PRESIDENT KUHL:  Is there

        14       any any other Senator wishing to speak on the

        15       bill?  The bill is still high at this point, so

        16       we'll have to lay the bill aside awaiting a

        17       message from the second floor.

        18                      Senator DeFrancisco.

        19                      SENATOR DeFRANCISCO:  I couldn't

        20       have put it better, Mr. President.

        21                      ACTING PRESIDENT KUHL:  Senator

        22       Paterson.

        23                      SENATOR PATERSON:  I think on the











                                                             
9873

         1       vote on the bill.  I just didn't hear what you

         2       said.

         3                      ACTING PRESIDENT KUHL:  I said

         4       the bill is high.  We're awaiting a message from

         5       the second floor. We'll lay the bill aside

         6       awaiting that message.  There is a report,

         7       Senator DeFrancisco, of the Finance Committee,

         8       if you'd like.

         9                      SENATOR PATERSON:  Mr. President,

        10       I was going to address that before it was left

        11       and spoken to, which I thought was being

        12       psychic.  I thought the bill was substituted

        13       earlier today.

        14                      ACTING PRESIDENT KUHL:  We were

        15        -- we're debating the Assembly bill.  The

        16       Assembly bill is high.  We're awaiting the

        17       message here.

        18                      SENATOR PATERSON:  Mr. President,

        19       a point of order.  I may be missing something.

        20       We have a message of necessity on this bill.  It

        21       can't be high.

        22                      ACTING PRESIDENT KUHL:  We do not

        23        -- did not -- underlined -- not have a message











                                                             
9874

         1       of necessity.  We're awaiting a message of

         2       necessity. The bill is laid aside awaiting the

         3       message.

         4                      SENATOR PATERSON:  Mr. President,

         5       a point of order.  This is the Assembly bill, am

         6       I not correct, and the Assembly bill had a

         7       message of necessity so, therefore, in my -- I

         8       mean you can rule on this, but it's my opinion

         9       it doesn't need a message and it's, therefore,

        10       not high.

        11                      ACTING PRESIDENT KUHL:  Senator

        12       Paterson, I think you're very fortunate, unlike

        13       the Assembly, who have had about five or six

        14       hours sleep last night, my point being that the

        15       message we had dealing with this was yesterday's

        16       message.  Today's message has not arrived, so we

        17       can not take up the bill today.

        18                      SENATOR PATERSON:  Mr. President,

        19       maybe it's me who's high and not the bill,

        20       but -

        21                      ACTING PRESIDENT KUHL:  I don't

        22       know what you did when you left here last night,

        23       Senator.











                                                             
9875

         1                      SENATOR PATERSON:  But I don't

         2       think that we need a message because we already

         3       have a message. That's all I'm saying, on the -

         4       on the Assembly bill, which is the one that

         5       we're actually debating that we already have a

         6       message on and that's just the point of order

         7       I'm trying to make.

         8                      ACTING PRESIDENT KUHL:  Senator

         9       Paterson, I'd be happy to sit down and explain

        10       this to you, but it is the understanding and the

        11       ruling of the Chair that we do need a message of

        12       necessity to take this bill up, so we do not

        13       have one at the desk and we cannot take a vote

        14       on the bill, so the bill will be laid aside

        15       awaiting the message from the second floor.

        16                      SENATOR PATERSON:  Thank you, Mr.

        17       President.

        18                      I will -- I'd love to sit down

        19       and talk to you, and we'll have something like a

        20       soft drink to go along.

        21                      ACTING PRESIDENT KUHL:  Senator

        22       DeFrancisco.

        23                      SENATOR DeFRANCISCO:  Mr.











                                                             
9876

         1       President, could we return to reports of

         2       standing committees.  My understanding is there

         3       is a Finance Committee report at the desk.

         4                      ACTING PRESIDENT KUHL:  There

         5       is.  We'll return to reports of standing

         6       committees and ask the Secretary to read.

         7                      Secretary will read.

         8                      THE SECRETARY:  Senator Stafford,

         9       from the Committee on Finance, reports the

        10       following nomination:

        11                      Member of the Board of Trustees

        12       of the City University of New York, Nilda Soto

        13       Ruiz, of the Bronx.

        14                      ACTING PRESIDENT KUHL:  Any

        15       Senator wishing to speak on the nomination?

        16       Hearing none, the question is on the nomination

        17       of Nilda Ruiz, of the Bronx, to become a member

        18       of the Board of Trustees of the City University

        19       of New York.  All those in favor of the

        20       nomination signify by saying aye.

        21                      (Response of "Aye.")

        22                      Opposed nay.

        23                      (There was no response. )











                                                             
9877

         1                      The nominee is confirmed.

         2       Secretary will continue to read.

         3                      THE SECRETARY:  Senator Stafford,

         4       from the Committee on Finance, reports the

         5       following nomination:

         6                      Member of the Board of Trustees

         7       of the State University of New York, Nicole Yae

         8       Kyoung Kim, of New York City.

         9                      ACTING PRESIDENT KUHL:  Is there

        10       any Senator wishing to speak on the nomination?

        11       Hearing none, the question is on the nomination

        12       of Nicole Kim, of New York City, to become a

        13       member of the Board of Trustees of the State

        14       University of New York.  All those in favor of

        15       the nomination signify by saying aye.

        16                      (Response of "Aye.")

        17                      Opposed nay.

        18                      (There was no response. )

        19                      The nominee is confirmed.

        20       Secretary will continue to read.

        21                      THE SECRETARY:  Senator Stafford,

        22       from the Committee on Finance, reports the

        23       following nominations:











                                                             
9878

         1                      Members of the Board of Trustees

         2       of the New York State Higher Education Services

         3       Corporation:  John R. Durso, Jr., of Massapequa

         4       Park, and David Porter, of Saratoga Springs.

         5                      ACTING PRESIDENT KUHL:  Is there

         6       any Senator wishing to speak on the nomination?

         7       Hearing none, the question is on the nominations

         8       of John Durso, Jr., of Massapequa Park, and

         9       David Porter, of Saratoga Springs, to become

        10       members of the Board of Trustees of New York

        11       State Higher Education Services Corporation.

        12       All those in favor of the nominations signify by

        13       saying aye.

        14                      (Response of "Aye.")

        15                      Opposed nay.

        16                      (There was no response. )

        17                      The nominees are confirmed.

        18       Secretary will continue to read.

        19                      THE SECRETARY:  Senator Stafford,

        20       from the Committee on Finance, reports the

        21       following nomination:

        22                      Member of the Board of Trustees

        23       of the State University of New York, College of











                                                             
9879

         1       Environmental Science and Forestry, Curtis H.

         2       Bauer, of Jamestown.

         3                      ACTING PRESIDENT KUHL:  Is there

         4       any Senator wishing to speak on the nomination?

         5       Hearing none, the question is on the nomination

         6       of Curtis H. Bauer, of Jamestown, New York, to

         7       become a member of the Board of Trustees of the

         8       State University of New York College of

         9       Environmental Science and Forestry.  All those

        10       in favor of the nomination, signify by saying

        11       aye.

        12                      (Response of "Aye.")

        13                      Opposed nay.

        14                      (There was no response. )

        15                      The nominee is confirmed.

        16                      Secretary will continue to read.

        17                      THE SECRETARY:  Senator Stafford,

        18       from the Committee on Finance, reports the

        19       following bill:

        20                      Senate Print 7948, by Senator

        21       Marcellino, an act to amend the Environmental

        22       Conservation Law and others.

        23                      ACTING PRESIDENT KUHL:  Without











                                                             
9880

         1       objection, the bill goes directly to third

         2       reading.

         3                      Senator DeFrancisco, we have a

         4       substitution on that bill we'd like to take at

         5       this time?

         6                      SENATOR DeFRANCISCO:  Would you

         7       please make the substitution.

         8                      ACTING PRESIDENT KUHL:  Secretary

         9       will read the substitution.

        10                      THE SECRETARY:  Senator

        11       Marcellino moves to discharge from the Committee

        12       on Finance Assembly Bill Number 11332 and

        13       substitute it for the identical Third Reading

        14       Calendar 1779.

        15                      ACTING PRESIDENT KUHL:

        16       Substitution is ordered.

        17                      SENATOR DeFRANCISCO:  Mr.

        18       President.

        19                      ACTING PRESIDENT KUHL:  Senator

        20       DeFrancisco.

        21                      SENATOR DeFRANCISCO:  Mr.

        22       President, could we take up calendar -- Bill

        23       Number 7948, please.











                                                             
9881

         1                      ACTING PRESIDENT KUHL:  Secretary

         2       will read the title of Calendar Number 1748.

         3                      SENATOR DeFRANCISCO:  Mr.

         4       President, 7948.

         5                      ACTING PRESIDENT KUHL:  Calendar

         6       Number 1748 -- Senate Print 7948, and it's

         7       Calendar Number 1779.

         8                      THE SECRETARY:  Calendar Number

         9       1779, substituted earlier today, by the Assembly

        10       Committee on Rules, Assembly Print 11332, an act

        11       to amend the Environmental Conservation Law and

        12       others.

        13                      SENATOR GOLD:  Last section.

        14                      ACTING PRESIDENT KUHL:  Secretary

        15       will read the last section.  (Pause)

        16                      The bill is high.  The bill will

        17       be laid aside.

        18                      SENATOR GOLD:  Is there a message

        19       from the Governor on this, for this Assembly

        20       bill?

        21                      Mr. President.  Mr. President.

        22                      ACTING PRESIDENT KUHL:  Senator

        23       Gold, why do you rise?











                                                             
9882

         1                      SENATOR GOLD:  Say good morning,

         2       Mr. President.

         3                      ACTING PRESIDENT KUHL:  Good

         4       morning to you too.

         5                      SENATOR GOLD:  Now, Mr.

         6       President, while we're at it, this bill passed

         7       the Assembly, I assume if it's high, with a

         8       message. Does that message come across with the

         9       bill?

        10                      ACTING PRESIDENT KUHL:  Senator

        11       Gold, we're in the same situation we were with

        12       the bill we just had before the house that we

        13       had to lay aside. We don't of a message on it.

        14                      SENATOR GOLD:  I want to

        15       understand, Mr. President, if I could, I just

        16       want to understand the rule.  Are you ruling,

        17       sir, that we may not consider messages of

        18       necessity from the Governor unless they are

        19       dated on the date that we are considering bills;

        20       is that the rule now for all time?

        21                      ACTING PRESIDENT KUHL:  That's

        22       correct.  That has been the practice of the

        23       house, as I'm told in many years past, and











                                                             
9883

         1       you've had many more years experience than I do,

         2       Senator.

         3                      SENATOR GOLD:  That's why -

         4                      ACTING PRESIDENT KUHL:  I remind

         5       you sometimes when you're old, you are -- you

         6       forget more often than not.

         7                      SENATOR GOLD:  That's why I

         8       asked.

         9                      ACTING PRESIDENT KUHL:  Senator

        10       DeFrancisco, we now have a message of necessity

        11       at the desk on 1774 which was laid aside.

        12                      SENATOR DeFRANCISCO:  Yes.  Can

        13       we return to 1774 and ask that the message be

        14       accepted.

        15                      ACTING PRESIDENT KUHL:  Ask the

        16       Secretary to read the title.

        17                      THE SECRETARY:  Calendar Number

        18       1774, substituted earlier today, by the Assembly

        19       Committee on Rules, Assembly Print Number 11326,

        20       an act authorizing the creation of a state debt.

        21                      ACTING PRESIDENT KUHL:  Senator

        22       DeFrancisco.

        23                      SENATOR DeFRANCISCO:  You say











                                                             
9884

         1       there is a message at the desk.

         2                      ACTING PRESIDENT KUHL:  There is.

         3                      SENATOR DeFRANCISCO:  Move to

         4       accept the message.

         5                      ACTING PRESIDENT KUHL:  Motion is

         6       to accept the message on Calendar Number 1774.

         7       All those in favor signify by saying aye.

         8                      (Response of "Aye.")

         9                      Opposed nay.

        10                      (There was no response.)

        11                      ACTING PRESIDENT KUHL:  Is there

        12       any other Senator wishing to speak on the bill?

        13       Hearing none, the Secretary will read the last

        14       section.

        15                      SENATOR PATERSON:  Slow roll

        16       call, Mr. President.

        17                      ACTING PRESIDENT KUHL:  Slow roll

        18       call has been requested on Senate Calendar

        19       Number 1774.  Secretary will ring the bells and

        20       call the roll slowly.

        21                      THE SECRETARY:  Senator Abate.

        22                      (There was no response. )

        23                      Senator Alesi.











                                                             
9885

         1                      (There was no response. )

         2                      Senator Babbush.

         3                      SENATOR BABBUSH:  No.

         4                      THE SECRETARY:  Senator Bruno.

         5                      (Affirmative indication.)

         6                      THE SECRETARY:  Aye.

         7                      Senator Connor.

         8                      (Negative indication. )

         9                      THE SECRETARY:  No.

        10                      Senator Cook.

        11                      (There was no response. )

        12                      Senator DeFrancisco.

        13                      SENATOR DeFRANCISCO:  Yes.

        14                      THE SECRETARY:  Senator DiCarlo.

        15                      SENATOR DiCARLO:  Aye.

        16                      THE SECRETARY:  Senator

        17       Dollinger.

        18                      (There was no response. )

        19                      Senator Espada.

        20                      (There was no response. )

        21                      Senator Farley.

        22                      (There was no response. )

        23                      Senator Gold.











                                                             
9886

         1                      SENATOR GOLD:  No.

         2                      THE SECRETARY:  Senator

         3       Gonzalez.

         4                      (There was no response. )

         5                      Senator Goodman.

         6                      (There was no response. )

         7                      Senator Hannon.

         8                      SENATOR HANNON:  Yes.

         9                      THE SECRETARY:  Senator Hoblock.

        10                      SENATOR HOBLOCK:  Yes.

        11                      THE SECRETARY:  Senator

        12       Hoffmann.

        13                      (There was no response. )

        14                      Senator Holland.

        15                      (There was no audible response. )

        16                      THE SECRETARY:  Senator Johnson.

        17                      SENATOR JOHNSON:  Aye.

        18                      THE SECRETARY:  Senator Kruger.

        19                      SENATOR KRUGER:  No.

        20                      THE SECRETARY:  Senator Kuhl.

        21                      SENATOR KUHL:  Aye.

        22                      THE SECRETARY:  Senator Lachman.

        23                      (There was no response.)











                                                             
9887

         1                      Senator Lack.

         2                      (There was no response. )

         3                      Senator Larkin.

         4                      (There was no response. )

         5                      Senator Larkin.

         6                      (There was no response. )

         7                      Senator LaValle.

         8                      SENATOR LAVALLE:  Yes.

         9                      THE SECRETARY:  Senator Leibell.

        10                      (There was no response. )

        11                      Senator Leichter.

        12                      (There was no response. )

        13                      Senator Levy.

        14                      SENATOR LEVY: Aye.

        15                      THE SECRETARY:  Senator Libous.

        16                      SENATOR LIBOUS:  Aye.

        17                      THE SECRETARY:  Senator Maltese.

        18                      SENATOR MALTESE:  Aye.

        19                      THE SECRETARY:  Senator

        20       Marcellino.

        21                      SENATOR MARCELLINO:  Aye.

        22                      THE SECRETARY:  Senator Marchi.

        23                      SENATOR MARCHI: Aye.











                                                             
9888

         1                      THE SECRETARY:  Senator

         2       Markowitz.

         3                      SENATOR MARKOWITZ:  No.

         4                      THE SECRETARY:  Senator Maziarz.

         5                      SENATOR MAZIARZ:  Aye.

         6                      THE SECRETARY:  Senator Mendez.

         7                      SENATOR MENDEZ:  No.

         8                      THE SECRETARY:  Senator

         9       Montgomery.

        10                      (There was no response. )

        11                      THE SECRETARY:  Senator Nanula.

        12                      SENATOR NANULA:  No.

        13                      THE SECRETARY:  Senator

        14       Nozzolio.

        15                      (There was no response. )

        16                      Senator Onorato.

        17                      SENATOR ONORATO:  No.

        18                      THE SECRETARY:  Senator

        19       Oppenheimer.

        20                      (There was no response. )

        21                      Senator Padavan.

        22                      (There was no response. )

        23                      Senator Paterson.











                                                             
9889

         1                      SENATOR PATERSON:  No.

         2                      THE SECRETARY:  Senator Present.

         3                      SENATOR PRESENT:  Aye.

         4                      THE SECRETARY:  Senator Rath.

         5                      SENATOR RATH:  Aye.

         6                      THE SECRETARY:  Senator Saland.

         7                      (There was no response. )

         8                      Senator Santiago.

         9                      (There was no response. )

        10                      Senator Seabrook.

        11                      SENATOR SEABROOK:  No.

        12                      THE SECRETARY:  Senator Sears

        13       excused.

        14                      Senator Seward.

        15                      SENATOR SEWARD:  Aye.

        16                      THE SECRETARY:  Senator Skelos.

        17                      SENATOR SKELOS:  Yes.

        18                      THE SECRETARY:  Senator Smith.

        19                      SENATOR SMITH:  No.

        20                      THE SECRETARY:  Senator Spano.

        21                      SENATOR SPANO: Aye.

        22                      THE SECRETARY:  Senator

        23       Stachowski.











                                                             
9890

         1                      SENATOR STACHOWSKI:  No.

         2                      THE SECRETARY:  Senator

         3       Stafford.

         4                      SENATOR STAFFORD:  Aye.

         5                      THE SECRETARY:  Senator Stavisky

         6       excused.

         7                      THE SECRETARY:  Senator Trunzo.

         8                      SENATOR TRUNZO:  (Affirmative

         9       indication. )

        10                      THE SECRETARY:  Senator Tully.

        11                      SENATOR TULLY:  Aye.

        12                      THE SECRETARY:  Senator Velella.

        13                      SENATOR VELELLA:  (Affirmative

        14       indication. )

        15                      THE SECRETARY:  Senator Volker.

        16                      SENATOR VOLKER:  Yes.

        17                      THE SECRETARY:  Senator Waldon.

        18                      SENATOR WALDON:  (Negative

        19       indication. )

        20                      THE SECRETARY:  Senator Wright.

        21                      SENATOR WRIGHT:  Aye.

        22                      ACTING PRESIDENT KUHL:  Secretary

        23       will call the absentees.











                                                             
9891

         1                      THE SECRETARY:  Senator Abate.

         2                      (There was no response. )

         3                      Senator Alesi.

         4                      SENATOR ALESI:  Yes.

         5                      THE SECRETARY:  Senator Cook.

         6                      SENATOR COOK:  No.

         7                      THE SECRETARY:  Senator

         8       Dollinger.

         9                      SENATOR DOLLINGER:  No.

        10                      THE SECRETARY:  Senator Espada.

        11                      (There was no response. )

        12                      Senator Farley.

        13                      SENATOR FARLEY:  Aye.

        14                      THE SECRETARY:  Senator

        15       Gonzalez.

        16                      (There was no response. )

        17                      Senator Hoffmann.

        18                      SENATOR HOFFMANN:  If I could

        19       explain my vote, please.

        20                      ACTING PRESIDENT KUHL:  Senator

        21       Hoffmann, to explain her vote.

        22                      SENATOR HOFFMANN:  Thank you, Mr.

        23       President.











                                                             
9892

         1                      There's a temptation to simply

         2       vote yes on this for expediency sake and join

         3       the spirit of the hour where there's agreement

         4       on so many things after months and months of

         5       discord and significant ideological difference,

         6       but the people in the central New York area who

         7       I represent have indicated to me over and over

         8       again that they are worried about the way the

         9       state handles its affairs, that they feel

        10       troubled by the propensity of the state to spend

        11       more than it has and not meet its obligations or

        12       to not meet its obligations on time.

        13                      Well-intentioned as this measure

        14       is from an environmentalist perspective and

        15       beneficial as it might be to parts of the state

        16       that would enjoy the rewards that come from

        17       special projects, projects which would accent

        18       tourism which we greatly need, projects which

        19       would help stimulate local industries related to

        20       tourism and local economic development projects

        21       which we might tangentially say does fit nicely

        22       with an environmental bond act, still do not

        23       justify borrowing more than a billion dollars











                                                             
9893

         1       that the state simply does not have right now.

         2                      Our debt load is all too often

         3       ignored when we are addressing our financial

         4       responsibilities. We do not have the right to

         5       pass debt on to future legislatures or to future

         6       generations, and I fear that's what we would be

         7       doing.

         8                      Now, it could be, would be fairly

         9       simple for me and I'm sure many of my other

        10       colleagues to say I have some philosophical

        11       differences but I will let the people of my

        12       district decide; but that's not why we're

        13       elected.  We're supposed to provide leadership

        14       on these types of issues, and I don't believe

        15       that it would show leadership that is expected

        16       of us to simply pass the buck to the voters on

        17       this.

        18                      My position is clear, and I

        19       believe I understand the will of the people in

        20       the 48th Senate District.  Therefore, I can not

        21       support this measure.

        22                      I vote in the negative.

        23                      ACTING PRESIDENT KUHL:  Senator











                                                             
9894

         1       Hoffmann will be recorded in the negative.

         2       Secretary will continue to call the roll

         3       slowly.

         4                      THE SECRETARY:  Senator Lachman.

         5                      (There was no response. )

         6                      Senator Lack.

         7                      (There was no response. )

         8                      Senator Larkin.

         9                      SENATOR LARKIN:  Aye.

        10                      THE SECRETARY:  Senator Leibell.

        11                      SENATOR LEIBELL: Aye.

        12                      THE SECRETARY:  Senator

        13       Leichter.

        14                      SENATOR LEICHTER:  Mr. President,

        15       yes.

        16                      ACTING PRESIDENT KUHL:  Senator

        17       Leichter will be recorded in the affirmative.

        18                      THE SECRETARY:  Senator

        19       Montgomery.

        20                      (There was no response. )

        21                      Senator Nozzolio.

        22                      SENATOR NOZZOLIO:  Aye.

        23                      THE SECRETARY:  Senator











                                                             
9895

         1       Oppenheimer.

         2                      SENATOR OPPENHEIMER:  Yes.

         3                      THE SECRETARY:  Senator Saland.

         4                      SENATOR SALAND:  Aye.

         5                      THE SECRETARY:  Senator

         6       Santiago.

         7                      (There was no response. )

         8                      SENATOR GOLD:  Detailed

         9       statement.

        10                      Mr. President.  Mr. President.

        11       Mr. President.  Is there anybody up there can

        12       hear me?  Mr. President.  I'll give you three

        13       shots.

        14                      ACTING PRESIDENT KUHL:  Senator

        15       Abate, did you want to speak?  The roll call is

        16       still open.  How do you wish to be recorded?

        17                      SENATOR ABATE:  Yes.

        18                      ACTING PRESIDENT KUHL:  You wish

        19       to be recorded in the affirmative.  I notice

        20       you, Senator Lack, will be recorded in the

        21       affirmative.

        22                      SENATOR LACK:  Yes.

        23                      Now, Senator Gold, why do you











                                                             
9896

         1       rise?

         2                      SENATOR GOLD:  I simply wanted a

         3       detailed statement, please.

         4                      ACTING PRESIDENT KUHL:  The roll

         5       call -- announce the results.

         6                      THE SECRETARY:  Ayes 38, nays

         7       16.

         8                      ACTING PRESIDENT KUHL:  The bill

         9       is passed.  Read the detailed statement.

        10                      THE SECRETARY:  Those recorded in

        11       the affirmative on Calendar Number 1774 are:

        12       Senators Abate, Alesi, Bruno, DeFrancisco,

        13       DiCarlo, Farley, Goodman, Hannon, Hoblock,

        14       Holland, Johnson, Kuhl, Lack, Larkin, LaValle,

        15       Leibell, Leichter, Levy, Libous, Maltese,

        16       Marcellino, Marchi, Maziarz, Nozzolio,

        17       Oppenheimer, Padavan, Present, Rath, Saland,

        18       Seward, Skelos, Spano, Stafford, Trunzo, Tully,

        19       Velella, Volker and Wright.

        20                      Those recorded in the negative

        21       Senators Babbush, Connor, Cook, Dollinger, Gold,

        22       Hoffmann, Kruger, Markowitz, Mendez, Nanula,

        23       Onorato, Paterson, Seabrook, Smith, Stachowski











                                                             
9897

         1       and Waldon.

         2                      Senators excused, Senators Sears

         3       and Stavisky.

         4                      Absent:  Espada, Gonzalez,

         5       Lachman, Montgomery and Santiago.

         6                      SENATOR CONNOR:  Mr. President.

         7                      ACTING PRESIDENT KUHL:  Senator

         8       Bruno.

         9                      SENATOR CONNOR:  Mr. President.

        10       Would the record please note that Senator

        11       Lachman is excused for religious reasons, that

        12       he left at the start of the sabbath yesterday

        13       and, of course, could not be present because of

        14       his religious observance; did not submit to me a

        15       written request to be excused but I want the

        16       record to note that he has been excused since

        17       last night before sundown.

        18                      ACTING PRESIDENT KUHL:  The

        19       record will reflect your remarks, Senator

        20       Connor, that Senator Lachman was excused. Thank

        21       you, Senator Connor.

        22                      Senator Bruno, we had previously

        23       taken up Calendar 1779. We laid the bill aside











                                                             
9898

         1       since the message had not arrived.  The message

         2       has arrived now, if you'd like to take that bill

         3       up.

         4                      SENATOR BRUNO:  Could we return

         5       to that bill, Mr. President.

         6                      ACTING PRESIDENT KUHL:  Secretary

         7       will read Calendar Number 1779 which was

         8       substituted previously.

         9                      THE SECRETARY:  Calendar Number

        10       1779, substituted earlier today, by the Assembly

        11       Committee on Rules, Assembly Print 11332, an act

        12       to amend the Environmental Conservation Law and

        13       others.

        14                      ACTING PRESIDENT KUHL:  Motion is

        15       to accept the message of necessity at the desk

        16       on Calendar Number 1779. All those in favor

        17       signify by saying aye.

        18                      (Response of "Aye.")

        19                      Opposed nay.

        20                      (There was no response. )

        21                      The message is accepted.

        22                      Any Senator wishing to speak on

        23       the bill?  Hearing none -- hearing none, the











                                                             
9899

         1       Secretary will read the last section.

         2                      THE SECRETARY:  Section 34. This

         3       act shall take effect after a chapter of the

         4       laws of 1996.

         5                      SENATOR CONNOR:  Same vote, same

         6       vote as on the last one.

         7                      ACTING PRESIDENT KUHL:  We can do

         8       that.  Secretary will record the -- if that's

         9       all right with the Majority Leader.

        10                      Senator Skelos, is that all right

        11       with you with exception?

        12                      SENATOR SKELOS:  No objection.

        13                      ACTING PRESIDENT KUHL:  The

        14       Secretary will record the same vote as was on

        15       Calendar Number 1774.

        16                      Announce the results.

        17                      Senator Marcellino.

        18                      SENATOR MARCELLINO:  Explain my

        19       vote.

        20                      ACTING PRESIDENT KUHL:  Senator

        21       Marcellino, to explain his vote on Calendar

        22       Number 1779.

        23                      SENATOR MARCELLINO:  Yeah, Mr.











                                                             
9900

         1       President.  This -- this is an important bill

         2       because in times of -

         3                      ACTING PRESIDENT KUHL:  Senator

         4       Marcellino, excuse me just a minute.  Let's get

         5       a little order in the house.  Have a little

         6       order in the house, please.  Members please take

         7       their seats, staff their seats.  If you have to

         8       have a conversation, please take it out of the

         9       chamber.

        10                      SENATOR SKELOS:  Mr. President.

        11                      ACTING PRESIDENT KUHL:  Senator

        12       Skelos.

        13                      SENATOR SKELOS:  I'd like to join

        14       you in your effort to get a little order in the

        15       chamber so if there are meetings going on,

        16       please take them outside of the chamber.  We'd

        17       like to proceed so that we can listen to the

        18       eloquence of Senator Gold and the wisdom of

        19       Senator Marcellino.

        20                      SENATOR MARCELLINO:  I appreciate

        21       that, sir.

        22                      Mr. President, may I start?

        23       Thank you.











                                                             
9901

         1                      ACTING PRESIDENT KUHL:  Senator

         2       Marcellino, to explain his vote.

         3                      SENATOR MARCELLINO:  Mr.

         4       President, certainly no one, myself included,

         5       the members who voted for this particular

         6       legislation, wants to increase debt or place any

         7       additional burdens on our already hard-pressed

         8       taxpayers, but this legislation puts forth the

         9       opportunity to do many jobs and many projects

        10       which are in need, deep need, to protect our

        11       environment, to protect our air, to protect the

        12       water, protect our daily lives, protect our

        13       population.

        14                      It's most important that we do

        15       this particular bill because the projects here

        16       could not be afforded in many cases by the local

        17       municipalities on whom the responsibility would

        18       fall.

        19                      They could not handle the burden

        20       individually.  This will assist them in doing

        21       some very needed landfill closures, incinerator

        22       closures, clean water closures, and so forth.

        23       It's important that this money be put forward,











                                                             
9902

         1       that this money be obtained so that these

         2       particular projects can go forward and so that

         3       our environment can be protected and cleaned

         4       up.

         5                      So I urge and I thank those who

         6       voted in the positive and I would hope those who

         7       voted in the negative would reconsider and, at

         8       the appropriate time, urge their constituents to

         9       vote for this particular legislation.  It is

        10       worthwhile.

        11                      ACTING PRESIDENT KUHL:  Senator

        12       Marcellino will be recorded in the affirmative.

        13                      Senator Gold, to explain his

        14       vote.

        15                      SENATOR GOLD:  Thank you very

        16       much, Mr. President.

        17                      Mr. President, I -- I feel that

        18       Senator Marcellino's remarks may be very

        19       accurate from his point of view and when you say

        20       our population and our water, Senator, if it was

        21       coming out of your mouth that's accurate and I'm

        22       worried about my population and my water, and

        23       people in my district, and this bill, while you











                                                             
9903

         1       say it does things that have to be done, are

         2       needed, there are a lot of things that have to

         3       be done that are needed and if the decision

         4       making is going to be political, then we're not

         5       taking care of our people, may be taking care of

         6       your people.

         7                      It's interesting to me how many

         8       people from around this state are ready to fund

         9       things for your people in the amount of $1.7

        10       billion.  I'm concerned about some real things.

        11       I'm concerned about lead, lead poisoning.  I'm

        12       concerned very much about hazardous waste

        13       closures, and I'm concerned about Superfund

        14       money running out and areas that don't qualify

        15       for Superfund which this bill may not take care

        16       of.  I'm concerned about the state's commitment

        17       to put up land and pay for it for the New York

        18       City watershed.

        19                      So, Senator, I don't think that

        20       you said anything that I disagree with if it was

        21       coming out of your mouth because from your point

        22       of view, I guess you're taking care of some

        23       things, but when we say "our" in this chamber,











                                                             
9904

         1       it's a question of whether the arms going out

         2       embrace all or a selected few.  I vote in the

         3       negative.

         4                      ACTING PRESIDENT KUHL:  Senator

         5       Gold will be recorded in the negative.  Announce

         6       the results.

         7                      THE SECRETARY:  Ayes 38, nays

         8       16.

         9                      ACTING PRESIDENT KUHL:  The bill

        10       is passed.

        11                      Senator Skelos.

        12                      SENATOR SKELOS:  Mr. President,

        13       there will be an immediate meeting of the Rules

        14       Committee in the Majority Conference Room.

        15                      ACTING PRESIDENT KUHL:  Immediate

        16       meeting of the Rules Committee.  Immediate

        17       meeting of the Rules Committee in the Majority

        18       Conference Room, Room 332.  Immediate meeting of

        19       the Rules Committee in the Majority Conference

        20       Room, Room 332.

        21                      Senator Holland.

        22                      SENATOR HOLLAND:  Mr. President,

        23       can we return to the order of motions and











                                                             
9905

         1       resolutions and adopt the Resolution Calendar,

         2       please.

         3                      ACTING PRESIDENT KUHL:  We'll

         4       return to the order of motions and resolutions.

         5       Every member has a Resolution Calendar on their

         6       desk.  The motion is to adopt the Resolution

         7       Calendar.  All those in favor signify by saying

         8       aye.

         9                      (Response of "Aye.")

        10                      Opposed nay.

        11                      (There was no response.)

        12                      The Resolution Calendar is

        13       adopted.

        14                      Senator Holland.

        15                      SENATOR HOLLAND:  Senator Maltese

        16       would like to open up his resolution regarding

        17       Medal of Honor winners, 4131, for any person in

        18       the house who would like to go on it.

        19                      ACTING PRESIDENT KUHL:  Senator

        20       Holland, as in the past when there are openings

        21       up of resolutions which are very meritorious

        22       resolutions, we'll put everybody on the

        23       resolution with the exception of those people











                                                             
9906

         1       who did not want to be on the resolution. Should

         2       we follow that same procedure with regard to

         3       this one?

         4                      SENATOR HOLLAND:  Seems the right

         5       thing to do.

         6                      ACTING PRESIDENT KUHL:  No

         7       objection from Senator Paterson and members of

         8       the Minority, Senator Holland, we'll put all the

         9       members of the chamber on Senator Maltese's

        10       resolution honoring the Medal of Honor winners,

        11       multi-state Medal of Honor winners, except for

        12       those people who do not wish to be on it if they

        13       would indicate that desire to the desk.

        14                      Senator Holland.

        15                      SENATOR HOLLAND:  Any other

        16       housekeeping, Mr. President?

        17                      ACTING PRESIDENT KUHL:  There is

        18       nothing else at the desk at this time, Senator

        19       Holland.

        20                      SENATOR HOLLAND:  Could we stand

        21       at ease then awaiting the report of the Rules

        22       Committee.

        23                      ACTING PRESIDENT KUHL:  Senate











                                                             
9907

         1       will stand at ease awaiting the report of the

         2       Rules Committee.

         3                      (Whereupon at 11:42 a.m., the

         4       Senate stood at ease. )

         5                      ACTING PRESIDENT KUHL:  Senate

         6       will come to order.  Chair recognizes Senator

         7       Skelos.

         8                      SENATOR SKELOS:  Mr. President.

         9       If we can return to reports of standing

        10       committees, I believe there is a report of the

        11       Rules Committee at the desk.  I ask that it be

        12       read.

        13                      ACTING PRESIDENT KUHL:  Return to

        14       the order of reports of standing committees.

        15                      Secretary will read the report of

        16       the Rules Committee.

        17                      THE SECRETARY:  Senator Bruno,

        18       from the Committee on Rules, reports the

        19       following bills:

        20                      Senate Print 4880, by Senator

        21       Hoblock, an act to amend the Education Law, in

        22       relation to instruction on the subject of human

        23       rights;











                                                             
9908

         1                      6955B, by Senator Holland, an act

         2       to establish a quality incentive payment

         3       program;

         4                      7493A, by Senator Spano, an act

         5       to amend the Labor Law, in relation to

         6       prohibiting the use of state funds;

         7                      7951, by Senator Bruno, an act to

         8       amend the Workers' Compensation Law and others,

         9       in relation to extending the effectiveness of

        10       certain provisions;

        11                      7954, by Senator Hannon, an act

        12       in relation to enacting the New York Health Care

        13       Reform Act of 1996;

        14                      7955, by the Senate Committee on

        15       Rules, an act to amend a Chapter of Laws of 1996

        16       amending the Workers' Compensation Law;

        17                      7956, by the Senate Committee on

        18       Rules, an act to amend the Public Health Law,

        19       the Mental Hygiene Law, and the Social Services

        20       Law;

        21                      7957, by the Senate Committee on

        22       Rules, an act to amend the Insurance Law, in

        23       relation to collateral; and











                                                             
9909

         1                      Assembly Print 11341, by the

         2       Assembly Committee on Rules, an act to amend the

         3       Public Health Law, in relation to patient

         4       services payments.

         5                      All bills ordered directly for

         6       third reading.

         7                      SENATOR SKELOS:  Mr. President,

         8       move to accept the report of the Rules

         9       Committee.

        10                      ACTING PRESIDENT KUHL:  The

        11       motion is to accept the report of the Rules

        12       Committee.  All those in favor, signify by

        13       saying aye.

        14                      (Response of "Aye.")

        15                      Opposed, nay.

        16                      (There was no response.)

        17                      The Rules Report is accepted.

        18                      SENATOR SKELOS:  Mr. President,

        19       if we could take up Senate Supplemental No. 1

        20       noncontroversial.

        21                      ACTING PRESIDENT KUHL:  Members

        22       should have Supplemental Calendar No. 1 on their

        23       desk, together with the bills that are on that











                                                             
9910

         1       calendar.

         2                      Secretary will read the

         3       noncontroversial reading of Supplemental

         4       Calendar No. 1.

         5                      THE SECRETARY:  Senator Hoblock

         6       moves to discharge from the Committee on

         7       Education Assembly Bill Number 6510 and

         8       substitute it for the identical Third Reading

         9       Calendar 1780.

        10                      ACTING PRESIDENT KUHL:

        11       Substitution is ordered.  Secretary will read

        12       the title.

        13                      THE SECRETARY:  Calendar Number

        14       1780, by Assemblyman Crowley, Assembly Print

        15       6510, an act to amend the Education Law.

        16                      ACTING PRESIDENT KUHL:  The

        17       Secretary will read the last section.

        18                      THE SECRETARY:  Section 2.  This

        19       act shall take effect immediately.

        20                      ACTING PRESIDENT KUHL:  Call the

        21       roll.

        22                      (The Secretary called the roll.)

        23                      THE SECRETARY:  Ayes 59.











                                                             
9911

         1                      ACTING PRESIDENT KUHL:  The bill

         2       is passed.

         3                      THE SECRETARY:  Senator Holland

         4       moves to discharge from the Committee on Rules

         5       Assembly Bill Number 9798C and substitute it for

         6       the identical Third Reading Calendar 1781.

         7                      ACTING PRESIDENT KUHL:

         8       Substitution is ordered.  Secretary will read

         9       the title.

        10                      THE SECRETARY:  Calendar Number

        11       1781, by Member of the Assembly Harenberg,

        12       Assembly Print 9798C, an act to establish a

        13       quality incentive payment program.

        14                      ACTING PRESIDENT KUHL:  Senator

        15       Skelos.

        16                      SENATOR SKELOS:  Mr. President,

        17       is there a message of necessity at the desk?

        18                      ACTING PRESIDENT KUHL:  There is.

        19                      SENATOR SKELOS:  Move to accept.

        20                      ACTING PRESIDENT KUHL:  The

        21       motion is to accept the message of necessity on

        22       Calendar Number 1781.  All those in favor,

        23       signify by saying aye.











                                                             
9912

         1                      (Response of "Aye.")

         2                      Opposed, nay.

         3                      (There was no response.)

         4                      Message is accepted.

         5                      SENATOR PATERSON:  Lay it aside.

         6                      ACTING PRESIDENT KUHL:  Lay the

         7       bill aside.

         8                      THE SECRETARY:  Senator Spano

         9       moves to discharge from the Committee on Rules

        10       Assembly Bill Number 8058A and substitute it for

        11       the identical Third Reading Calendar 1782.

        12                      ACTING PRESIDENT KUHL:

        13       Substitution ordered.  Secretary will read the

        14       title.

        15                      THE SECRETARY:  Calendar Number

        16       1782, by the Assembly Committee on Rules,

        17       Assembly Print 8058A, an act to amend the Labor

        18       Law.

        19                      ACTING PRESIDENT KUHL:  Secretary

        20       will read the last section.

        21                      SENATOR PATERSON:  Lay it aside.

        22                      ACTING PRESIDENT KUHL:  Lay the

        23       bill aside.











                                                             
9913

         1                      SENATOR LEICHTER:  Wrong bill.

         2                      ACTING PRESIDENT KUHL:  Is the

         3       lay aside withdrawn, Senator Leichter?

         4                      Secretary will read the last

         5       section.

         6                      THE SECRETARY:  Section 2.  This

         7       act shall take effect on the 60th day.

         8                      ACTING PRESIDENT KUHL:  Call the

         9       roll.

        10                      (The Secretary called the roll.)

        11                      THE SECRETARY:  Ayes 59.

        12                      ACTING PRESIDENT KUHL:  The bill

        13       is passed.

        14                      THE SECRETARY:  Senator Bruno

        15       moves to discharge from the Committee on Rules

        16       Assembly Bill Number 11331 and substitute it for

        17       the identical Third Reading Calendar 1783.

        18                      ACTING PRESIDENT KUHL:

        19       Substitution is ordered.  Secretary will read

        20       the title.

        21                      THE SECRETARY:  Calendar Number

        22       1783, by the Assembly Committee on Rules,

        23       Assembly Bill Number 11331, an act to amend the











                                                             
9914

         1       Workers' Compensation Law and others.

         2                      ACTING PRESIDENT KUHL:  Senator

         3       Skelos.

         4                      SENATOR SKELOS:  Is there a

         5       message at the desk?

         6                      ACTING PRESIDENT KUHL:  There is,

         7       Senator Skelos.

         8                      SENATOR SKELOS:  Move to accept.

         9                      ACTING PRESIDENT KUHL:  The

        10       motion is to accept the message of necessity on

        11       Calendar Number 1783.  All those in favor,

        12       signify by saying aye.

        13                      (Response of "Aye.")

        14                      Opposed, nay.

        15                      (There was no response.)

        16                      The message is accepted.

        17                      SENATOR LEICHTER:  Lay it aside.

        18                      ACTING PRESIDENT KUHL:  Lay the

        19       bill aside.

        20                      THE SECRETARY:  Senator Hannon

        21       moves to discharge from the Committee on Rules

        22       Assembly Bill 11330 and substitute it for the

        23       identical Third Reading Calendar 1784.











                                                             
9915

         1                      ACTING PRESIDENT KUHL:

         2       Substitution is ordered.  Secretary will read

         3       the title.

         4                      THE SECRETARY:  Calendar Number

         5       1784, by the Assembly Committee on Rules,

         6       Assembly Bill Number 11330.

         7                      ACTING PRESIDENT KUHL:  Senator

         8       Skelos.

         9                      SENATOR SKELOS:  Mr. President,

        10       is there a message at the desk?

        11                      ACTING PRESIDENT KUHL:  There is.

        12                      SENATOR SKELOS:  Move to accept.

        13                      ACTING PRESIDENT KUHL:  The

        14       motion is to accept the message of necessity on

        15       Calendar Number 1784.  All those in favor,

        16       signify by saying aye.

        17                      (Response of "Aye.")

        18                      Opposed, nay.

        19                      (There was no response.)

        20                      The message is accepted.

        21                      SENATOR PATERSON:  Lay it aside.

        22                      ACTING PRESIDENT KUHL:  Lay the

        23       bill aside.











                                                             
9916

         1                      THE SECRETARY:  Senator Bruno

         2       moves to discharge from the Committee on Rules

         3       Assembly Bill Number 11338 and substitute it for

         4       the identical Third Reading Calendar 1785.

         5                      ACTING PRESIDENT KUHL:

         6       Substitution is ordered.  Secretary will read

         7       the title.

         8                      THE SECRETARY:  Calendar Number

         9       1785, by the Assembly Committee on Rules,

        10       Assembly Print 11338, an act to amend the

        11       Chapter of the Laws of 1996.

        12                      ACTING PRESIDENT KUHL:  Senator

        13       Skelos.

        14                      SENATOR SKELOS:  Is there a

        15       message at the desk?

        16                      ACTING PRESIDENT KUHL:  There is.

        17                      SENATOR SKELOS:  Move to accept.

        18                      ACTING PRESIDENT KUHL:  The

        19       motion is to accept the message of necessity on

        20       Calendar Number 1785.  All those in favor,

        21       signify by saying aye.

        22                      (Response of "Aye.")

        23                      Opposed, nay.











                                                             
9917

         1                      (There was no response.)

         2                      Message is accepted.

         3                      SENATOR PATERSON:  Lay it aside.

         4                      ACTING PRESIDENT KUHL:  Lay the

         5       bill aside.

         6                      THE SECRETARY:  Senator Bruno

         7       moves to discharge from the Committee on Rules

         8       Assembly Bill Number 11329 and substitute it for

         9       identical Third Reading Calendar 1786.

        10                      ACTING PRESIDENT KUHL:

        11       Substitution is ordered.  The bill is high.  The

        12       bill will be laid aside.

        13                      THE SECRETARY:  Calendar Number

        14       1787, by the Senate Committee on Rules, Senate

        15       Print 7957, an act to amend the Insurance Law,

        16       in relation to collateral.

        17                      SENATOR SKELOS:  Mr. President,

        18       is there a message at the desk?

        19                      ACTING PRESIDENT KUHL:  There is,

        20       Senator Skelos.

        21                      SENATOR SKELOS:  Move to accept.

        22                      ACTING PRESIDENT KUHL:  The

        23       motion is to accept the message of necessity on











                                                             
9918

         1       Calendar Number 1787.  All those in favor,

         2       signify by saying aye.

         3                      (Response of "Aye.")

         4                      Opposed, nay.

         5                      (There was no response.)

         6                      The message is accepted.

         7                      Secretary will read the last

         8       section.

         9                      SENATOR LEICHTER:  Lay it aside.

        10                      ACTING PRESIDENT KUHL:  Lay the

        11       bill aside.

        12                      THE SECRETARY:  Calendar Number

        13       1788, by the Assembly Committee on Rules,

        14       Assembly Print 11341, an act to amend the Public

        15       Health Law.

        16                      SENATOR GOLD:  Lay it aside.

        17                      ACTING PRESIDENT KUHL:  The bill

        18       is high.  The bill will be laid aside.

        19                      Senator Skelos, that completes

        20       the reading of the noncontroversial calendar.

        21                      SENATOR SKELOS:  Mr. President,

        22       at this time, if we could take up Calendar

        23       Number 1781.











                                                             
9919

         1                      ACTING PRESIDENT KUHL:  Secretary

         2       will read Calendar Number 1781, by Senator

         3       Holland.

         4                      THE SECRETARY:  Calendar Number

         5       1781, by Member of the Assembly Harenberg,

         6       Assembly Print A.9798C substituted earlier

         7       today, an act to establish a quality incentive

         8       payment program.

         9                      ACTING PRESIDENT KUHL:  Senator

        10       Holland, an explanation of Calendar Number 1781,

        11       Senate Print 6955B, which was substituted

        12       earlier today, has been asked for by Senator

        13       Leichter.

        14                      SENATOR HOLLAND:  This is a bill

        15       to back up approximately $2 million in the

        16       budget to create a quality incentive payment

        17       program for adult homes in the state of New

        18       York.  If the adult homes run efficiently, meet

        19       all the requirements, the clients are taken care

        20       of well, then this $2 million will be

        21       distributed to those homes.

        22                      ACTING PRESIDENT KUHL:  Senator

        23       Leichter.











                                                             
9920

         1                      SENATOR LEICHTER:  If Senator

         2       Holland would yield.

         3                      SENATOR HOLLAND:  Yes.

         4                      ACTING PRESIDENT KUHL:  Senator

         5       Holland, do you yield?

         6                      Senator yields.

         7                      SENATOR LEICHTER:  I'm sorry, you

         8       refer to an appropriation of $2 million.  That's

         9       not in this bill.

        10                      SENATOR HOLLAND:  No, sir.

        11                      SENATOR LEICHTER:  The 2 million

        12       has been appropriated.

        13                      SENATOR HOLLAND:  Right.

        14                      SENATOR LEICHTER:  This provides

        15       as to the manner in which the money is to be -

        16                      SENATOR HOLLAND:  Correct.

        17                      SENATOR LEICHTER: -- is to be

        18       used.  If you'll continue to yield, Senator.

        19                      SENATOR HOLLAND:  Yes.

        20                      SENATOR LEICHTER:  Does this bill

        21       also provide that for-profit corporations that

        22       have publicly-traded shares may own these adult

        23       homes?











                                                             
9921

         1                      SENATOR HOLLAND:  I am told it

         2       does not, Senator.  No.

         3                      SENATOR LEICHTER:  Thank you.

         4                      ACTING PRESIDENT KUHL:  Secretary

         5       will read the last section.

         6                      THE SECRETARY:  Section 11.  This

         7       act shall take effect in 30 days.

         8                      ACTING PRESIDENT KUHL:  Call the

         9       roll.

        10                      (The Secretary called the roll.)

        11                      THE SECRETARY:  Ayes 59.

        12                      ACTING PRESIDENT KUHL:  The bill

        13       is passed.

        14                      Senator Skelos.

        15                      SENATOR SKELOS:  Would you please

        16       take up Calendar Number 1784, by Senator Hannon.

        17                      ACTING PRESIDENT KUHL:  Secretary

        18       will read the Calendar 1784, by Senator Hannon.

        19                      ACTING PRESIDENT KUHL:  Calendar

        20       Number 1784, by the Assembly Committee on Rules,

        21       Assembly Print 11330, substituted earlier today,

        22       an act in relation to enacting the New York

        23       Health Care Reform Act of 1996.











                                                             
9922

         1                      ACTING PRESIDENT KUHL:  Senator

         2       Paterson.

         3                      SENATOR PATERSON:  Mr. President,

         4       there will be an immediate conference of the

         5       Minority in Room 314, the Minority Conference

         6       Room.

         7                      ACTING PRESIDENT KUHL:  There

         8       will be an immediate meeting -

         9                      Senator Skelos.

        10                      SENATOR SKELOS:  I believe we're

        11       on debate so if we can continue the debate.

        12                      SENATOR PATERSON:  Mr. President,

        13       explanation.

        14                      ACTING PRESIDENT KUHL:  Senator

        15       Hannon, an explanation of Calendar Number 1784

        16       has been requested by Senator Paterson.

        17                      SENATOR HANNON:  Mr. President,

        18       this is the Health Care Reform Act of 1996.

        19       This is a measure that will take, in the main,

        20       the health care system of this state on to the

        21       brink of the 21st Century because it lasts until

        22       December 31st, 1999.

        23                      It is what I believe to be











                                                             
9923

         1       implementation of a very balanced, moderate

         2       approach to make sure that all of our

         3       constituents will be able to ensure quality and

         4       accessible health care.

         5                      As part and parcel of this, we

         6       have accompanying legislation, part of which has

         7       already passed this house in regard to the bill

         8       of rights and managed care, another bill that is

         9       further down the calendar in regard to Medicaid

        10       managed care, and this, of course, is the

        11       centerpiece which has taken a great amount of

        12       work by a great amount of talented people to

        13       bring us to a stage where a half century old

        14       system of having everything in the health care

        15       system set by the state will come to an end.

        16                      Effective January 1, 1997,

        17       third-party private payors will move to

        18       negotiated rates for hospital care.  We will

        19       continue the current rate system for the

        20       Medicaid fee for service while the rest of

        21       Medicaid that's under managed care will move

        22       accordingly.

        23                      We do something in terms of going











                                                             
9924

         1       to deregulation that really no other state has

         2       done, because we accompany that deregulation

         3       with a substantial commitment to what has been

         4       called the public good of this state, the

         5       commitment towards indigent care through a bad

         6       debt and charity care pool, the commitment

         7       towards a high quality graduate medical

         8       education.  We do that through a separate GME

         9       pool.  We do it through commitments for child

        10       health, expanding that up to the age of 18.  We

        11       do it through the creation of provider service

        12       networks, all in order to offer consumers and

        13       purchasers new options for accessibility for

        14       health care.

        15                      We create a large number and

        16       continue a large number of initiatives for

        17       private business insurance for regional -- on a

        18       regional basis, for public hospitals,

        19       catastrophic health care expense program,

        20       ambulatory services.  We continue a borrowing

        21       program for hospitals in high volume indigent

        22       care service areas.  We establish a program for

        23       expansion of cancer detection and treatment











                                                             
9925

         1       services in underserved areas.  We take a task

         2       force on quality guidelines and expand that so

         3       that we can have measurements, measurements of

         4       HMOs, of hospitals and other provider services,

         5       to do it in conjunction with the experts in the

         6       field wherever they may be in terms of

         7       clinicians or hospitals or HMOs.

         8                      Making this many changes all at

         9       once would in some people's eyes seem to be too

        10       much, but this is something that has to be

        11       done.  We're the last of two states in the

        12       nation to have total rate setting, and we must

        13       move on in order to make sure that the needs of

        14       the next century are addressed by this state.

        15       This is an implementation of thousands of hours

        16       by hundreds of people begun by a task force by

        17       this Governor who had the sense and I think

        18       common sense recognition that it had to be

        19       addressed, picked up by a number of people on

        20       his temporary task force.  Enormous numbers of

        21       members of the Executive Branch, of the Assembly

        22       and of this house, have spent a lot of time

        23       trying to make sure that what will come about is











                                                             
9926

         1       something that we can all be proud of, and I

         2       would move the bill, Mr. President.

         3                      ACTING PRESIDENT KUHL:  Senator

         4       Paterson.

         5                      SENATOR PATERSON:  Mr. President,

         6       if Senator Hannon would yield for a question.

         7                      ACTING PRESIDENT KUHL:  Senator

         8       Hannon, do you yield to a question from Senator

         9       Paterson?

        10                      SENATOR HANNON:  Yes.

        11                      ACTING PRESIDENT KUHL:  The

        12       Senator yields.

        13                      SENATOR PATERSON:  Senator

        14       Hannon, certainly no offense, we're conferencing

        15       the bill.  We have only seen the bill in the

        16       last two hours, and I have only seen the bill in

        17       the last five minutes, so if you would yield to

        18       a question, there are just a couple of areas I

        19       want to see where we've come out on them in

        20       negotiations.

        21                      SENATOR HANNON:  Yes, I said I

        22       would yield.

        23                      SENATOR PATERSON:  Thank you.











                                                             
9927

         1       Graduate medical education, Senator, maybe I

         2       missed that in your remarks just then.  How are

         3       we on graduate medical education?

         4                      SENATOR HANNON:  We have done it

         5       a number of ways.  We create a pool which shall

         6       be in the approximate order of $1.385 billion to

         7       finance graduate medical education in the state,

         8       both direct and indirect cost.  We set aside 10

         9       percent of that to hospitals and consortia that

        10       would achieve some graduate medical education

        11       reform goals.

        12                      We fund the pool through

        13       contributions by private third-party payors in

        14       relation to the individuals covered for hospital

        15       care.  We do it in a carefully ordered way so as

        16       to steer clear of any mileposts that the federal

        17       ERISA or provider tax system would erect and to

        18       steer clear of the mileposts that any type of

        19       other states' taxes in regard to insurance

        20       companies would erect.

        21                      ACTING PRESIDENT KUHL:  Senator

        22       Paterson.

        23                      SENATOR PATERSON:  And, Senator,











                                                             
9928

         1       if you will continue to yield.

         2                      There will be no encumbrance to

         3       the geographic locations that have high rates of

         4       graduate medical education occurring inside

         5       them?

         6                      SENATOR HANNON:  I presume by the

         7       means of encumbrance you mean that there should

         8       not be a shift in the costs born and raised in

         9       any given area.  What we have tried to do is to

        10       preserve as best possible -- and probably we

        11       have done that.  I believe we have done that

        12       with every assurance that the monies raised in

        13       one area are kept in that area, that there are

        14       no cost shifts, that there is no regional

        15       redistribution, and that the goods in one area

        16       stay there.

        17                      ACTING PRESIDENT KUHL:  Senator

        18       Paterson.

        19                      SENATOR PATERSON:  Thank you,

        20       Senator Hannon.  Your interpretation of my

        21       answer is correct and your answer is quite

        22       helpful.  If you would yield for another

        23       question.











                                                             
9929

         1                      SENATOR HANNON:  Yes.

         2                      ACTING PRESIDENT KUHL:  Senator

         3       continues to yield.

         4                      SENATOR PATERSON:  Senator, in

         5       the area of uncompensated care, care for the

         6       indigent where the hospitals will be showing a

         7       willingness to provide that care, what

         8       assistance will they get from our budget on

         9       that?

        10                      SENATOR HANNON:  Well, in order

        11       to really provide a reasonable transition, we as

        12       a body in the bill that we passed last night

        13       felt that the cuts that had been proposed in the

        14       budget were far too deep and we reinstated many

        15       of them.  We feel that makes the rest of the

        16       hospital system very viable.

        17                      In this bill, we create an

        18       indigent care pool.  We finance that in regard

        19       to a mechanism, in regard to procedures that are

        20       done with alternates to direct payments into

        21       pools, and we think that we have provided an

        22       adequate distribution of those funds to the

        23       various different types of hospitals throughout











                                                             
9930

         1       this state, once again being quite mindful as to

         2       not upset the regional distributions that are

         3       there.

         4                      ACTING PRESIDENT KUHL:  Senator

         5       Paterson.

         6                      SENATOR PATERSON:  Thank you,

         7       Senator Hannon.  If you will continue to yield,

         8       just an observation first.

         9                      From what we have been able to

        10       look at, that seems quite right.  The

        11       restorations are almost complete.  That's really

        12       very encouraging in that particular area since

        13       there are so many individuals that don't have

        14       any real protection in terms of health care in

        15       the state.

        16                      The Child Health Plus area which

        17       you referred to earlier in your opening remarks,

        18       can you tell me a little bit more about that?

        19                      SENATOR HANNON:  We expand the

        20       amount of coverage in a very substantial way and

        21       expand the amount of money available for that in

        22       a very substantial way.  We take the current age

        23       eligibility, from birth to age 14, and bring it











                                                             
9931

         1       to from birth to age 19 as well as adding

         2       hospital inpatient care to the current primary

         3       and preventive care.

         4                      SENATOR PATERSON:  Thank you, Mr.

         5       President.  If Senator would continue to yield.

         6                      ACTING PRESIDENT KUHL:  Senator

         7       Hannon, do you continue to yield?

         8                      SENATOR PATERSON:  What about

         9       some of the services, such as eye care, dental

        10       care?  I don't see them as part of the

        11       restorations, and they weren't really part of

        12       the original proposal.  Is there any plan to

        13       provide those types of services to children?

        14                      SENATOR HANNON:  This house had

        15       included that in the NYPHRM bill that we

        16       passed.  Upon more detailed and focused analysis

        17       of the costs, that would have added more than we

        18       could afford in regard to the public good

        19       financing; and while we look upon that as highly

        20       desirable, the information that came to us

        21       subsequent to our passage of our NYPHRM bill

        22       points out that as we do this Health Care Reform

        23       Act, that's something, while desirable, is not











                                                             
9932

         1       something we can afford.

         2                      SENATOR PATERSON:  Senator,

         3       you're saying that was part of the original

         4       proposal from this house.  But with respect to

         5       the financing, if I get this correct, when it

         6       came down to the final negotiations, we didn't

         7       have the resources to provide it?

         8                      SENATOR HANNON:  That's correct.

         9       The provisions for dental and vision were

        10       estimated, and when we got down to the focus and

        11       had the better numbers available and the better

        12       experience rating to be in the order of $20

        13       million, and that was not something that fit

        14       into the plan that we could come up with.

        15                      We have, I will tell you, made

        16       substantial commitment already, almost to the

        17       tune of an increased $100 million to this plan,

        18       and the point was -- the judgment was made that

        19       that was what we could afford at the current

        20       time.

        21                      SENATOR PATERSON:  Thank you,

        22       Senator.  I actually did give you credit for

        23       it.  The fact that we can't provide the full











                                                             
9933

         1       services in such a valuable area I think is

         2       unfortunate.

         3                      If the Senator will continue to

         4       yield.  With respect to the financing of SLIPA

         5       hospitals and the reimbursements, can you tell

         6       me how that is going to be set up?

         7                      SENATOR HANNON:  There are two

         8       parts to the SLIPA hospitals.  One is in regard

         9       to the public hospitals, and there is a separate

        10       set-aside that I think essentially hospitals

        11       such as Nassau and Erie, Westchester and HHC in

        12       New York City will continue in the first year to

        13       get their full shot.  The rest of the SLIPA

        14       hospitals it turns out, interestingly, as we put

        15       a real incentive into the computation of bad

        16       debt and charity care, real incentive to only

        17       pay for actual bad debt and charity care, the

        18       SLIPA hospitals, in general, did better with the

        19       caveat that all of these numbers are not

        20       something that are truly subject to mathematical

        21       100 percent precision because needs change,

        22       populations change and federal definitions

        23       change even more.











                                                             
9934

         1                      SENATOR PATERSON:  Thank you,

         2       Senator.  If Senator will yield to another

         3       question?

         4                      SENATOR HANNON:  Yes.

         5                      SENATOR PATERSON:  With all of

         6       this, in terms of the restructuring of the

         7       hospital economic system, would we be able to

         8       prevent in the future at least -- the future

         9       meaning the next fiscal year -- the downsizing

        10       of hospitals, the laying off of workers and

        11       specifically to that end, do we have any

        12       provision in legislation for the retraining of

        13       workers or certainly reevaluating the skills of

        14       workers, putting them in other areas we may have

        15       closed off.

        16                      SENATOR HANNON:  To get to your

        17       last part of the question first -

        18                      SENATOR PATERSON:  Right.

        19                      SENATOR HANNON:  Yes, we do.  We

        20       have made some substantial commitments to worker

        21       retraining.  Interestingly, part of that is

        22       pegged to the state's attainment of a managed

        23       care waiver from the federal government,











                                                             
9935

         1       something that is well overdue in regard to its

         2       action by Washington in a very surprising way,

         3       and we need that in order to have things to

         4       retrain people for.  Doing any type of

         5       retraining without that is silly because the

         6       whole direction of our health care system is

         7       towards this managed care, so we need that in

         8       place.

         9                      I'm sorry, the first part of your

        10       question?

        11                      SENATOR PATERSON:  Downsizing.

        12                      SENATOR HANNON:  Oh, downsizing.

        13       When it comes to downsizing, many people

        14       especially in the media would like to

        15       characterize it as a black or white situation.

        16       You're either going to have downsizing or not;

        17       you can keep hospitals open or not.  In reality,

        18       this bill comes about because there is great

        19       changes already in health care in the United

        20       States, and the degree to which we use hospitals

        21       in this state is far out of proportion to any

        22       other states, be they comparable states in terms

        23       of our population and geographic and urban











                                                             
9936

         1       situations or whether they be totally different,

         2       so that what we need to do is to focus our

         3       financial resources into different arenas, into

         4       more outpatient clinics, comprehensive health

         5       care centers, primary care; and hospitals

         6       themselves, as a practical matter, have begun

         7       that.

         8                      So will there be downsizing?  You

         9       can say, yes, there will be downsizing in

        10       hospitals, but it's interesting when you look at

        11       the numbers what happened just within the last

        12       12 months in this state.  The hospitals had some

        13       downsizing but the rest of the health care

        14       industry had an increase.  So that we do have

        15       more demand for health care.  It's just a

        16       question of where it's placed.  Some people will

        17       say, well, look.  If you pass this, you will

        18       have hospitals closing.  I would only point out

        19       two different things in that regard.  One is

        20       while the current system -- while the current

        21       NYPHRM system had been in existence, we've had

        22       40 hospitals close.  My point is, whether or not

        23       you have this, you will have hospitals close.











                                                             
9937

         1                      Now, is this going to cause it?

         2       I don't believe whatsoever it's going to cause

         3       it.  I will tell you since we passed our

         4       proposal in regard to what we call the NYPHRM -

         5       the Senate proposal -- there have been four

         6       major changes in this state.  Buffalo, three

         7       hospitals have gotten together as networks.  We

         8       have Beth Israel and Long Island Jewish have

         9       announced a merger.  We have Mount Sinai and New

        10       York University Hospital have announced a

        11       merger, and there has been -- the first thing

        12       you do when you talk to somebody in the field is

        13       you ask what's changed today.

        14                      So we have had vast changes.  So

        15       I think what we're going to do is enable the

        16       natural progression and progress that health

        17       care is taking to go forward.  We're not going

        18       to have artificial impediments.  We're not going

        19       to have artificial incentives to go sideways or

        20       to go backwards.

        21                      SENATOR PATERSON:  Thank you very

        22       much, Senator.

        23                      Mr. President, on the bill.











                                                             
9938

         1                      ACTING PRESIDENT KUHL:  Senator

         2       Paterson, on the bill.

         3                      SENATOR PATERSON:  I think

         4       Senator Hannon is correct that the structuring

         5       of health care may be changing and so the

         6       statistics with respect to hospitals may be

         7       somewhat inaccurate, because some of the health

         8       care that they provide may be antiquated by new

         9       and different procedures.  Certainly the

        10       lessening of the use of hospitals and probably

        11       the greater use of other types of health care

        12       facilities in particular areas is probably the

        13       evolution of where the industry is going.

        14                      Please recognize that I represent

        15       a district, Harlem and Washington Heights and

        16       East Harlem, that has lost eight major hospitals

        17       in the last score of years, hospitals such as

        18       Flower Hospital, Fifth Avenue Hospital, Arthur

        19       Logan, Knickerbocker Hospital, Joint Center for

        20       Diseases, Mother Cabrini, and Francis Delafield

        21       Hospital, have all disappeared in terms of the

        22       service that they provide, and we are subject to

        23       different types of rumors about merging of











                                                             
9939

         1       facilities between St. Luke's and Roosevelt

         2       Hospital, the possible and then canceled merger

         3       between St. Luke's Hospital and Columbia

         4       Presbyterian, the possible closure of Harlem

         5       Hospital, and a bond act that we had to secure

         6       in 1988 to save North General Hospital which is

         7       the largest employer of people in the Harlem

         8       community; and so in an area where health care

         9       is of such great need and of such great value to

        10       the constituents there, there is just a concern,

        11       not necessarily that the hospitals remain open

        12       or remain whole or even remain in the fashion

        13       that they were before but, as Senator Hannon

        14       says, that there be the type of health care

        15       provided that exists even if they come from

        16       community health centers and the like.

        17                      On the legislation itself, it

        18       appears that a great deal of what did not exist

        19       in the Governor's original bill on December 15

        20       now exists because of hard negotiation and firm

        21       points of view by those who really understand

        22       the necessity of health care.  It may not be an

        23       excuse for the elongated process or the delay in











                                                             
9940

         1       the passage of this budget, but it certainly

         2       justifies the feeling of those who couldn't go

         3       forward until there was a piece of legislation

         4       in this area that we could finally live with.

         5                      We are certainly feeling as if we

         6       have to congratulate all those who have hung in

         7       there to regain so many services that mean so

         8       much to so many who were deprived in the

         9       industry and deprived in the ability to receive

        10       decent and affordable health care, and it is the

        11       reason that only until now we really could feel

        12       that -- an agreement that may not represent or

        13       fulfill all the needs but will certainly be a

        14       lot better than was originally promised six

        15       months ago.

        16                      ACTING PRESIDENT KUHL:  Senator

        17       Dollinger.

        18                      SENATOR DOLLINGER:  Mr.

        19       President, will the sponsor yield to a couple

        20       questions?

        21                      ACTING PRESIDENT KUHL:  Senator

        22       Hannon, do you yield?

        23                      SENATOR HANNON:  Yes.











                                                             
9941

         1                      ACTING PRESIDENT KUHL:  Senator

         2       yields.

         3                      SENATOR DOLLINGER:  First of all,

         4       Senator, let me congratulate you.  You have

         5       worked awful hard on this project for the better

         6       part of I would say six months, but it's

         7       probably double that and beyond.  Since the time

         8       you have been chairman of the Senate Health

         9       Committee, I know that this has been an issue

        10       near and dear to your heart.  I congratulate you

        11       in getting it to this point.

        12                      We may disagree about aspects of

        13       where we have finally come to and where we're

        14       going, but certainly you and your staff deserve

        15       a great deal of congratulations for a piece of

        16       work that is monumental in its scope and, as you

        17       properly point out, consumed hundreds if not

        18       thousands of hours.  So let me start with that

        19       background.

        20                      Through you, Mr. President, one

        21       question that I want to ask.  You mentioned

        22       something about artificial incentives in the

        23       system.  Aren't we really putting an artificial











                                                             
9942

         1       disincentive in the system if we're going do

         2       finance this through a tax on the hospitals?

         3                      And my follow-up question to

         4       that, Senator, is:  Is the consequence of this,

         5       if the assessment against the hospitals that's

         6       used to finance this tool, if it's successful,

         7       it will drive down hospitals' utilization, very

         8       costly hospital utilization, but it will also

         9       result in a smaller assessment being paid into

        10       the pool each year; and then my question is if

        11       we have less going into the pool but rising

        12       need, how do we cover the gap?

        13                      SENATOR HANNON:  Your point is

        14       well taken in the sense that that would be the

        15       common sense approach to looking at this

        16       mechanism.  In this case, however, the answer is

        17       to take you away from that intuitive approach

        18       and to point out that what we're doing by

        19       raising the money for the public goods is only

        20       to have a nominal levy on the hospitals and put

        21       that nominal levy at a very high percentage,

        22       thereby encouraging people to pay directly into

        23       pools, which we really feel is the actual











                                                             
9943

         1       financing mechanism, skipping entirely the

         2       health care providers that otherwise would be

         3       subject to it.

         4                      SENATOR DOLLINGER:  When you say

         5       people pay directly to the pools, you are

         6       talking about the insurance carriers, the Blues,

         7       employer groups, making direct payments into the

         8       pool and, therefore, not doing it through the

         9       other method which would be to simply follow the

        10       current pattern of having physicians refer to

        11       hospitals and then have the bill that the

        12       hospital charges to the insurer reflect the 8.6;

        13       and maybe just clarify for me what that final

        14       percentage was that was worked out?

        15                      SENATOR HANNON:  In regard to the

        16       bad debt and charity care, it's approximately

        17       8.5.  That hasn't been -- the point is that it

        18       would be at the payor's election to go directly

        19       into the pools, thereby skipping all of the

        20       requirements that the providers, which is an

        21       expanded base from the current, would have to

        22       pay.  I would point out that any regard to an

        23       allowance or a levy that's in the law is simply











                                                             
9944

         1       a continuation in that regard of what's there

         2       now.  It's a continuation on a different base

         3       because the current base is a fixed rate.  The

         4       new base would be a negotiated rate.  But we're

         5       not enacting anything new in that regard.

         6                      SENATOR DOLLINGER:  Again,

         7       through you, Mr. President, if the chairman of

         8       the Health Committee will yield.

         9                      I just want to make sure I

        10       understand.  If there's fewer referrals to the

        11       hospitals, then there will be a smaller

        12       assessment paid into the pools from the

        13       hospitals.  That, as I understand it, is the

        14       incentive that drives the reduction in hospital

        15       utilization which you and I have discussed

        16       before has really been the problem in this

        17       state, is the utilization number has been too

        18       high.  So what we're trying to do is reduce

        19       utilization by a common method that government

        20       has used in the past, which is to tax the

        21       activity and, therefore, discourage it.  We do

        22       that through the assessment, but if we work -

        23       if it succeeds and utilization declines, then











                                                             
9945

         1       there would be less cash put into the pool.  Is

         2       it my understanding that then as part of this

         3       process, the system having worked, we will then

         4       go to payors and say it's worked but we still

         5       have a growing need.  We need you to make

         6       voluntary payments into the pool to make sure

         7       that we have enough cash to cover the growing

         8       need?  And if so, how do we do that in a

         9       negotiated rate setting?

        10                      SENATOR HANNON:  I don't believe

        11       that will happen.  Nobody here, however, has a

        12       total crystal ball but I will share with you why

        13       I don't think that will happen.  We have taken

        14       the current allowances on inpatient care, and

        15       that's where they are, only expanded to not only

        16       inpatient care but also to comprehensive

        17       diagnostic and treatment centers as well as

        18       ambulatory surgical services and free-standing

        19       clinical labs, broadening the base

        20       substantially.  So that as a natural progression

        21       towards the more primary care, nonhospital care,

        22       takes place that we cover those changes in order

        23       to continue driving money for the goods that we











                                                             
9946

         1       feel ought to be covered.

         2                      SENATOR DOLLINGER:  Again,

         3       through you, Mr. President, if the chairman will

         4       continue to yield.

         5                      I understand that broadening.  I

         6       support that broadening, otherwise we would be

         7       really punishing inpatient/outpatient care in

         8       the hospital and we would see enormous growth in

         9       those ambulatory surgical centers, the

        10       diagnostic and treatment centers.

        11                      My follow-up question is, what

        12       happens if given the free market's ability to

        13       find the little holes -- the loopholes that may

        14       be left in this statute -- what happens if all

        15       of a sudden doctors' offices and other types of

        16       facilities suddenly acquire some kind of

        17       surgical ability, some kind of surgical

        18       capability, and we spawn an industry that is now

        19       outside the taxed scope?  My question is, don't

        20       we still run into the risk?  Don't we still run

        21       the problem that we will have declining payments

        22       into the pool in the face of growing need?

        23                      SENATOR HANNON:  As I said, our











                                                             
9947

         1       crystal ball is murky, but already, within hours

         2       of the main bill, we have another one on the

         3       calendar, 1788, that is technical corrections.

         4       I don't know how to forecast what the Health

         5       Care Reform Act of 1999 will be.  We just know

         6       there are enormous changes that take place.

         7       When we get to the managed care bill, Medicaid

         8       managed care bill, we simply couldn't extend

         9       what this Legislature had done just five years

        10       ago because of enormous changes in the way the

        11       delivery systems were.

        12                      So we may have to make

        13       adjustments, but to the extent that I believe

        14       this is reasonable and balanced and tries to be

        15       equitable in all types of the providers so we

        16       get good services for our patients, I think it's

        17       a reasonable approach.  We'll just have to see

        18       what happens in the future.

        19                      SENATOR DOLLINGER:  Okay.  I can

        20       buy that.

        21                      Mr. President, if I can just

        22       follow up with a couple more questions.

        23                      Mr. Chairman, you know that I've











                                                             
9948

         1       raised the issue of the pool and how the pooling

         2       arrangement works, and my concern has been that

         3       the issue of whether we have a statewide pool -

         4       that all the providers would pay into a

         5       statewide pool that would then distribute the

         6       bad debt and charity care assets on the basis of

         7       a statewide distribution.  I know that in the

         8       bill this house passed, in our version, an

         9       earlier version of this bill, we had regional

        10       pooling devices that would allow communities,

        11       give an incentive to communities, to solve their

        12       own problem vis-a-vis both graduate medical

        13       education and bad debt and charity care.

        14                      I want to make sure I understand

        15       this.  Could you tell me how that system works

        16       in this final bill?  Is it a statewide pool or

        17       is it a regional pool?

        18                      ACTING PRESIDENT KUHL:  Senator

        19       Dollinger, could I interrupt just a minute.

        20       It's getting extremely noisy in here, and

        21       regardless of whether anybody in here wants to

        22       listen to your debate, the stenographer has an

        23       obligation and a responsibility to record it,











                                                             
9949

         1       and she's indicated to the desk that she can not

         2       hear the debate.  The noise is too loud.  So

         3       could we please keep it down.  If you have

         4       conversations, take them out of the chamber.

         5       Let's let the debate continue.

         6                      Thank you for the interruption.

         7       Please continue, Senator Dollinger.

         8                      SENATOR DOLLINGER:  I assume the

         9       chairman of the Health Committee understands the

        10       question.  It's an issue we've discussed a

        11       number of times.

        12                      SENATOR HANNON:  What we have

        13       done -- I don't think we call it -- I do not

        14       believe we still call it regional pools, but

        15       what we have done is to make sure that the money

        16       for bad debt and charity care that is raised

        17       upstate stays upstate, same percentages.  Money

        18       that's raised in New York City stays in New York

        19       City, and money raised in Long Island stays in

        20       Long Island, and we have less in the current

        21       cost shifts between those three regions, so we

        22       have narrowed that.

        23                      SENATOR DOLLINGER:  Through you











                                                             
9950

         1       again, Mr. President.

         2                      There was a provision in the

         3       earlier bill that we did that would have

         4       specifically impacted the communities that I

         5       represent, that is, would have allowed local

         6       communities to bring forth plans to deal with

         7       both the GME and the bad debt and charity care

         8       pool.  Is that provision still in the final

         9       bill, Mr. President?

        10                      SENATOR HANNON:  It is, and

        11       refined and honed, but it is still substantially

        12       there.  It's called the Regional Demonstrations

        13       for Financing Public Goods, and we allow the

        14       hospitals and payors to collaborate on regional

        15       models for public goods financing.  It's subject

        16       to state approval and then the design, and it

        17       would be specifically for Monroe County, which

        18       visits to the county understand the long

        19       history, individual health care initiatives

        20       there, collaborative efforts throughout the

        21       county, and we feel that they will probably be

        22       coming forward with their own proposals and that

        23       would be something the Legislature, the











                                                             
9951

         1       Executive, would be receptive to.

         2                      SENATOR DOLLINGER:  Two final

         3       questions, Mr. President, again, through you.

         4                      One is the issue of the

         5       uncompensated care.  I know there is about $738

         6       to 750 million that will be taken out of the

         7       projected assessment-created pool that will be

         8       used to pay for uncompensated care.  My

         9       understanding is that there have been estimates

        10       of the total uncompensated need in this state

        11       which run to the vicinity of about $1.2 billion,

        12       leaving somewhere between $450 million and $500

        13       million as a current gap between what would be

        14       reimbursed to the hospitals and what the current

        15       need is; and my further understanding is that

        16       under the current system, depending on how much

        17       uncompensated care a hospital takes, they get a

        18       proportional payment, proportional dollars from

        19       the bad debt and charity care pool.

        20                      My question is, how does it work

        21       in a negotiated rate system if -- since you're

        22       in essence cutting the fat out of the other

        23       rates that the hospitals have had, how do you











                                                             
9952

         1       pay for that additional $500 million in

         2       uncompensated need, assuming it's there?

         3                      SENATOR HANNON:  One doesn't know

         4       if it's there.  You look at the different

         5       computations in the current system and you see

         6       enormous variations even in the same institution

         7       year to year.  You do know that the current

         8       system has incentives for the financial arm of a

         9       hospital to put all sorts of costs into the

        10       outpatient clinics in creating greater bad

        11       debt.  We do not know -- in fact, I have seen

        12       other estimates that's in the Governor's

        13       Temporary Task Force on the Reform Act that the

        14       total amount of uninsured is about $4 billion.

        15                      The difficulty here is getting

        16       good accurate measurements, good accurate

        17       measurements which are part of the smaller task

        18       force provisions that are at the end of this

        19       bill which I hope would be forthcoming.  One of

        20       the other things is that whenever you set up to

        21       pay for certain uncompensated care, you actually

        22       create incentives for people to get into that;

        23       you create incentives sometimes for employers











                                                             
9953

         1       not to provide insurance coverage, thereby

         2       making that need even greater.

         3                      So the cost shifting that goes on

         4       is a phenomenon that we still have to contend

         5       with.  The best thing I can think of is what we

         6       tried to do with this, frankly, compared to any

         7       other state, enormous amount of support in

         8       regard to uncompensated care, an enormous amount

         9       of support in regard to graduate medical

        10       education, and then looking at the rest of the

        11       financing stream to institutions is we provide a

        12       solid bedrock of support to these institutions

        13       so that, as we grapple with the rest of the

        14       questions of the uninsured that needs to be

        15       addressed and quality care that needs to be

        16       addressed, that we have a good basis for going

        17       forward.

        18                      SENATOR DOLLINGER:  Okay.  I'm

        19       willing to accept that.

        20                      One final question, Mr.

        21       President.

        22                      Senator, you know in my

        23       discussions about this bill in the whole health











                                                             
9954

         1       care reform debate, one of the bottom line

         2       questions for me is, do we end up with a

         3       healthier New York?  We end up with a less

         4       expensive health care system.  But do we end up

         5       with a healthier New York population?

         6                      And it seems to me that all that

         7       we do should be tested against that measure,

         8       that ultimate measure.  I believe, as I think

         9       you do, that this bill will drive our cost out

        10       of the system.  The question is does it also

        11       drive out quality care?

        12                      And I guess my question to you,

        13       and you have been closer to this than I have -

        14       although certainly you have been good to me in

        15       giving me information, your staff has been, in

        16       helping me understand this.  But someone said to

        17       you, as I say to you now, will New Yorkers be

        18       healthier after this bill passes and becomes

        19       law?

        20                      SENATOR HANNON:  Yes.

        21                      SENATOR DOLLINGER:  What do you

        22       believe?

        23                      SENATOR HANNON:  I fully believe











                                                             
9955

         1       that with the initiatives in the legislation

         2       here which have been a collaborative effort

         3       through all parts of this government that we

         4       will have a better health care system through

         5       this for the hospitals, through the Medicaid

         6       managed care proposal that we'll have in a few

         7       minutes, hopefully, through the general managed

         8       care provisions we have already done, and

         9       through the substantial work we did in the

        10       budget.  I totally believe that the needs of

        11       this state in terms of health care are

        12       increasing, if only because the baby boomers are

        13       getting over 50.

        14                      SENATOR DOLLINGER:  Absolutely.

        15                      SENATOR HANNON:  And when that

        16       happens, the needs of -- incidences of need for

        17       medical services increases, so that whatever we,

        18       quote, "save," in health care I believe has to

        19       be put back into health care itself because

        20       we're going to have ever-expanding needs as the

        21       baby boomers age out.

        22                      I would say one thing I can be

        23       certain of, though, is for the hundreds of











                                                             
9956

         1       people who have worked on this bill, when we

         2       pass it, their health will be much healthier.

         3                      (Laughter.)

         4                      SENATOR DOLLINGER:  On the bill,

         5       Mr. President.

         6                      ACTING PRESIDENT KUHL:  Senator

         7       Dollinger, on the bill.

         8                      SENATOR DOLLINGER:  This is an

         9       enormously complicated piece of legislation.  I

        10       guess I now understand why President Clinton -

        11       when he tried to do it at the federal level, it

        12       was a thousand pages.  It's up to 140.  I know

        13       this is a very complicated issue, and Senator

        14       Hannon I think is absolutely correct.  This

        15       comes down to a calculation of the future that

        16       may be very difficult for us all to predict, and

        17       that is, what happens when you put in a system

        18       that has incentives, that has disincentives,

        19       that alters the fee-for-service system, which I

        20       think we all recognize we need to abandon -- but

        21       what happens when you change those incentives

        22       and create the possibility of reducing

        23       utilization, of saving us money without











                                                             
9957

         1       sacrificing quality, and while the overall

         2       impact of this is largely unknown?  I think it's

         3       difficult to predict how it's going to finally

         4       all shake out.  I wish in that respect we had

         5       more time, that we could establish a chain of

         6       six months.  I guess we're going to have six

         7       months in coming, but a time in which we can

         8       evaluate from the providers' point of view, go

         9       back out to our constituencies and say, "Here's

        10       what we think the right thing to do is.  Here's

        11       what we're prepared to embark on.  What are the

        12       kinds of changes that may be necessary?"

        13                      There is always a watershed

        14       moment in one of these progressions.  This may

        15       be a watershed moment, but I think it's a system

        16       that we're still going to have to keep our

        17       finger on the pulse and as that pulse quickens

        18       or slows, we're going to have to tinker with

        19       this system again.

        20                      I am going to end up voting for

        21       this bill.  I think there's some good things in

        22       it.  I think the expansion of the Child Health

        23       Plus, some initiatives that give us real











                                                             
9958

         1       opportunity.  But recognize, everyone, that the

         2       issues that surround health care, although this

         3       may propel them a great deal forward, I'm not

         4       quite sure we're still at our goal of making a

         5       healthier New York, and I certainly commit

         6       myself as long as I'm on the Health Committee to

         7       continue to try to progress us down that path.

         8       But I, for one, will keep a very firm finger on

         9       the pulse to see how the heart is beating in New

        10       York in the future.

        11                      ACTING PRESIDENT KUHL:  Senator

        12       Leichter, did you wish to speak on the bill?

        13                      SENATOR LEICHTER:  I yield to

        14       Senator Abate.

        15                      ACTING PRESIDENT KUHL:  Before

        16       Senator Abate, Senator Saland, you indicated a

        17       desire to speak on the bill.

        18                      Senator Saland.

        19                      SENATOR SALAND:  Mr. President,

        20       would Senator Hannon yield, please?

        21                      SENATOR HANNON:  Yes.

        22                      ACTING PRESIDENT KUHL:  Senator

        23       Hannon, do you yield to Senator Saland?











                                                             
9959

         1                      The Senator yields.

         2                      SENATOR SALAND:  Senator Hannon,

         3       I'm looking at page 69 of your bill, the section

         4       that deals with professional education pool

         5       funding, and I apologize if you may have been

         6       asked this question.  I came into the chamber

         7       near the end of your debate with Senator

         8       Paterson and sat through your exchange with

         9       Senator Dollinger.  In that bill, as I

        10       understand from the comments that you had made

        11       on the floor, I believe your intention is that

        12       the respective regions shall effectively see the

        13       dollars that are raised for purposes of

        14       professional education remain in that region?

        15                      SENATOR HANNON:  Yes.

        16                      SENATOR SALAND:  Or am I

        17       misconstruing your comments?

        18                      SENATOR HANNON:  I believe this

        19       references an earlier letter you had sent me.

        20                      SENATOR SALAND:  I'm sorry?

        21                      SENATOR HANNON:  Are you making

        22       reference to the contents of a letter you sent

        23       me -











                                                             
9960

         1                      SENATOR SALAND:  Right.

         2                      SENATOR HANNON:  -- about the

         3       concerns about the shift.  We have not had any

         4       shift by embracing a larger region.  We are

         5       keeping the money that is raised within New York

         6       City in New York City.  We're keeping money

         7       raised in Long Island within Long Island and

         8       then the rest of the state together, we're

         9       keeping that together.

        10                      SENATOR SALAND:  I noted just

        11       that there was a reference to definition of

        12       regions, and in trying to locate the appropriate

        13       subsection of the bill, I'm not quite sure that

        14       those definitions are there in this particular

        15       section.  It's probably in existing law and

        16       hasn't been amended, so I take great comfort in

        17       your comments and thank you for your response.

        18                      SENATOR HANNON:  Thank you.

        19                      ACTING PRESIDENT KUHL:  Senator

        20       Abate.

        21                      SENATOR ABATE:  Senator Hannon

        22       yield to a question?

        23                      SENATOR HANNON:  Yes.











                                                             
9961

         1                      ACTING PRESIDENT KUHL:  The

         2       Senator yields.

         3                      SENATOR ABATE:  On a prior

         4       debate, I had raised some issues around the

         5       numbers of uninsured particularly in New York

         6       City that come into the New York City hospitals,

         7       and that you agreed with me that those numbers

         8       are ever increasing; and right now, throughout

         9       the state, there are approximately 2.9 million

        10       people uninsured.  Give or take, I think that's

        11       the correct number.

        12                      Was there any consideration given

        13       to developing a trigger mechanism?  If the

        14       uninsured population in any one region increases

        15       beyond a certain percentage, there would be an

        16       availability or discussion or formula so that

        17       that region could get additional assistance?

        18                      SENATOR HANNON:  Well, I think

        19       that would be looking at the problem from the

        20       wrong end.  I think you have to say why do

        21       people become uninsured?  And the uninsurance

        22       takes place mainly because the coverage ceases

        23       to be provided by their employer, so that as we











                                                             
9962

         1       see substantial increases to an employer,

         2       especially with those of 50 or less employees,

         3       they tend to not offer it because they can't

         4       afford it.  Their choice is trying to run a

         5       business with no benefits or run no business at

         6       all.  So that what you have to do here is have a

         7       reasonable cost to the system.  You have to take

         8       away the double digit increases that have been

         9       taking place to the private employers, and I

        10       think that has been the main thrust, and we will

        11       be lessening this guaranteed flow from those

        12       people into the system.

        13                      We are going to allow a number of

        14       other mechanisms that would encourage these

        15       employers to provide coverage through -- one

        16       through the pilot programs in regard to health

        17       insurance; second, through the ability of the

        18       provider service networks so that the providers

        19       themselves can band together and figure out how

        20       to make efficient delivery and make direct

        21       agreements with employers, cutting out the

        22       HMOs.  Believe me, we don't like that whatsoever

        23       but there, right there, you can lower the costs











                                                             
9963

         1       to a substantial number; and then the final part

         2       of dealing with this is, right now the current

         3       system in regard to indigent care, in regard to

         4       money and payments from the bad debt and charity

         5       care really have been around too long.  People

         6       know how to utilize them.  They don't truly

         7       measure the amount of the uncompensated care, so

         8       that we have put changes in to have that so that

         9       the actual burden faced by a hospital will tend

        10       to be reimbursed to that hospital.

        11                      SENATOR ABATE:  But how do we

        12       address the issue where an individual is

        13       uninsured, unemployed, and not Medicaid

        14       eligible?  How do we address that population,

        15       if, in fact, that increases over time?

        16                      SENATOR HANNON:  I mean,

        17       uninsured, unemployed, not covered by -

        18       Medicaid eligible, that's truly a population no

        19       one has ever described to me before, and I'm not

        20       sure it exists.

        21                      SENATOR ABATE:  We do know it

        22       exists just with our dealings with ADAP, that

        23       there are people that were -











                                                             
9964

         1                      SENATOR HANNON:  If you are

         2       talking about special groups -

         3                      SENATOR ABATE:  Yes.

         4                      SENATOR HANNON:  -- in a number

         5       of different areas where we are able to identify

         6       people with special needs, we've tried to do

         7       that.  With regard to ADAP, we have put in a

         8       special program that will supplement the

         9       additional $9 million that is now coming to this

        10       state from the federal government with an

        11       additional $12 million.  Through your efforts

        12       and Senator Goodman's efforts, those are in

        13       this.

        14                      If you go and look in another

        15       bill, which is not before us, but will soon be,

        16       the Medicaid managed care bill, we have special

        17       needs plans in regard to those who are dealing

        18       with mental health problems or dealing with AIDS

        19       problems, so to an extent you can do that.

        20       Frankly, I don't think you can just pluck

        21       something out there in vague general terms and

        22       say, "What have you done?"

        23                      Wherever there is something that











                                                             
9965

         1       is identifiable and there is a rational step to

         2       get to it, I think we have addressed it.

         3                      SENATOR ABATE:  Just briefly on

         4       the bill.  I believe that this is a better bill

         5       than the original ones that we have looked at.

         6       There are a lot of very good people that worked

         7       on this bill.

         8                      Senator Hannon, I want to

         9       compliment you that the ADAP funding -- finally,

        10       New York State is recognizing that they need to

        11       be involved in this very important program.  Up

        12       until this budget, New York State did not

        13       recognize that the AIDS Drug Assistance Program

        14       was a state responsibility.  This will go a long

        15       way in helping many people who are suffering

        16       with AIDS, allow them to remain independent, and

        17       get vital drugs that will keep their -

        18       hopefully elongate and produce quality in their

        19       lives.  I'm very happy there is money restored

        20       to graduate medical education, Child Health Plus

        21       was expanded, and there's continued funding for

        22       SLIPA and financially distressed hospitals.

        23                      But as Senator Dollinger has











                                                             
9966

         1       said, I'm still concerned about the New York

         2       City hospitals.  They have enormous needs, and I

         3       hope that NYPHRM will allow them to address

         4       these needs, and along with many of my

         5       colleagues we're going to be closely monitoring

         6       the impacts and effects of NYPHRM.

         7                      I will be, though, supporting

         8       this bill.

         9                      ACTING PRESIDENT KUHL:  Senator

        10       Leichter, did you wish to speak?

        11                      SENATOR LEICHTER:  I will explain

        12       my vote.

        13                      ACTING PRESIDENT KUHL:  Secretary

        14       will read the last section.

        15                      THE SECRETARY:  Section 11.  This

        16       act shall take effect immediately.

        17                      ACTING PRESIDENT KUHL:  Call the

        18       roll.

        19                      (The Secretary called the roll.)

        20                      ACTING PRESIDENT KUHL:  Senator

        21       Leichter, to explain his vote.

        22                      SENATOR LEICHTER:  Mr. President,

        23       Senators Paterson and Dollinger and Abate have











                                                             
9967

         1       made really the points that I wanted to make,

         2       but I think it's important to emphasize that,

         3       here again, we had to respond to what was really

         4       a "scorched earth" policy on the part of the

         5       second floor in regard to hospitals and health

         6       care and a lot of other issues where this

         7       Legislature has had to make radical changes in

         8       the Governor's program as was, of course, done

         9       in the budget.

        10                      I would say out of the

        11       convoluted, sausage-making process which we call

        12       a budget-making process that this bill came out

        13       probably better than most others and shows what

        14       can be done by the Legislature working in a

        15       somewhat nonpartisan political manner, and I

        16       want to certainly acknowledge the work that was

        17       done by Senator Hannon as other members have and

        18       also by my Assemblyman, Assembly member Richard

        19       Gottfried, the chair of the Assembly Health

        20       Committee.

        21                      I think what we have here is a

        22       bill we can live with, a bill that recognizes

        23       not only that the health industry is terribly











                                                             
9968

         1       important for the welfare of New Yorkers but

         2       it's also incredibly important for the economy

         3       of the state of New York, and the Governor's

         4       original proposal which would have caused

         5       numerous hospitals particularly in urban areas

         6       to close would have been disastrous not only for

         7       the health care people but also for the

         8       economy.  I think we have improved it.

         9       Obviously there's a lot of questions that we

        10       still have.  There are a lot of concerns that we

        11       have.  We'll have to see how this system works,

        12       but as we go into it, I think we can be

        13       satisfied that we did the best possible under

        14       the circumstances.

        15                      I vote in the affirmative.

        16                      ACTING PRESIDENT KUHL:  Senator

        17       Leichter will be recorded in the affirmative.

        18                      Senator Cook to explain his vote.

        19                      SENATOR COOK:  Mr. President, I

        20       would like to add my admiration to Senator

        21       Hannon for being able to get his arms around an

        22       immensely complicated subject and to put

        23       together a bill which I think is remarkable in











                                                             
9969

         1       what it accomplishes.

         2                      I try and liken it to trying to

         3       build a tower with dominoes while riding a

         4       bobsled downhill at 100 miles an hour.  I just

         5       don't know quite how you do it.

         6                      But my real purpose in rising is

         7       to thank him again for sensitivity to the rural

         8       health concerns.  There are several provisions

         9       in here which -- and I want to emphasize this -

        10       which look toward the future.  They are not an

        11       effort to preserve the status quo or keep us

        12       where we have been but to help us move forward,

        13       and I think that's the thrust of this bill.  I

        14       think if we look at it in that context, we

        15       really understand the genius, if you will, of

        16       the way that it's been constructed.

        17                      And I, again, want to thank

        18       Senator Hannon for all of his work and all of

        19       his receptivity for the rural providers.

        20                      I vote in the affirmative.

        21                      ACTING PRESIDENT KUHL:  Senator

        22       Cook will be recorded in the affirmative.

        23                      Senator Volker to explain his











                                                             
9970

         1       vote.

         2                      SENATOR VOLKER:  Yes, Mr.

         3       President.  I just want to, first of all, say

         4       that I don't believe people realize the enormity

         5       of what is occurring here today with this bill.

         6       I don't think that when this session started or

         7       even a few months ago there were any of the

         8       senior members of this house, and I hesitate to

         9       put myself in that category, knowing the history

        10       of issues of this state who could or would have

        11       believed that a compromise would have been

        12       reached on something that is so complicated as

        13       NYPHRM.

        14                      Because I have a major public

        15       hospital, the Roswell Park Cancer Institute and

        16       Children's Hospital, in the Buffalo area, I had

        17       to try to learn more about health care and

        18       hospitals and all the rest of the stuff than I

        19       ever really wanted to know, and Senator Hannon

        20       and his staff was immensely helpful, and I just

        21       got to say very honestly in response to Senator

        22       Leichter -- and I understand that the process is

        23       sort of a sausage when you talk about a budget,











                                                             
9971

         1       but it's something called democracy.  It's a

         2       terrible system, democracy.  It's lasted here

         3       for over 200 years.  It's absolutely amazing

         4       that it's lasted.  But I think with all that, I

         5       guess it's not been as bad a system as we

         6       think.

         7                      But I think New York, thanks to

         8       Senator Hannon, the Governor, and the Assembly

         9        -- and it's no secret internally that, sure,

        10       there was immense internal politics, but that

        11       the people that worked on this bill probably

        12       worked in a more bipartisan manner than in

        13       almost any other time in the history of

        14       healthcare in this state.

        15                      I want to immensely compliment

        16       Senator Hannon for the job that is done.  As I

        17       said, I don't think -- very few people believed

        18       this could be done other than December, because

        19       the assumption around here was that this was

        20       going to be extended, and the Governor to his

        21       credit, by the way, said he wasn't going to do

        22       that.

        23                      But it is an amazing feat.  I











                                                             
9972

         1       want to especially compliment you for a piece

         2       that's in this bill on page 68 that relates to

         3       grants for children and cancer hospitals, and

         4       there's another piece that's part of this that,

         5       as I understand it, will have an immensely

         6       favorable effect on Roswell Park Cancer

         7       Institute in Buffalo, as well as Sloan

         8       Kettering, by the way, in New York City and also

         9       Children's Hospital in Buffalo, and several

        10       other specialty hospitals, and I want to thank

        11       him especially for that.

        12                      I think it's an admirable job.

        13                      ACTING PRESIDENT KUHL:  Secretary

        14       will announce the results.

        15                      THE SECRETARY:  Ayes 58.

        16                      ACTING PRESIDENT KUHL:  The bill

        17       is passed.

        18                      Senator DeFrancisco.

        19                      SENATOR DeFRANCISCO:  In an

        20       effort to help to define the length of the

        21       future debate today, I wanted everyone to know

        22       that the lemon ice is turning into lemonade

        23       presently, so I just wanted to put that on the











                                                             
9973

         1       record.

         2                      ACTING PRESIDENT KUHL:  Thank you

         3       very much, Senator DeFrancisco.

         4                      Senator Alesi.

         5                      SENATOR ALESI:  Mr. President,

         6       will you place Calendar 1788 before the house,

         7       please.

         8                      ACTING PRESIDENT KUHL:  Secretary

         9       will read the title to Calendar Number 1788.

        10                      THE SECRETARY:  Calendar Number

        11       1788, by the Assembly Committee on Rules,

        12       Assembly Bill Number 11341, an act to amend the

        13       Public Health Law.

        14                      ACTING PRESIDENT KUHL:  Senator

        15       Alesi.

        16                      SENATOR ALESI:  Mr. President, is

        17       there a message of necessity?

        18                      ACTING PRESIDENT KUHL:  There is.

        19                      SENATOR ALESI:  I move we accept.

        20                      ACTING PRESIDENT KUHL:  The

        21       motion is to accept the message of necessity on

        22       Calendar Number 1788 which is at the desk.  All

        23       those in favor, signify by saying aye.











                                                             
9974

         1                      (Response of "Aye.")

         2                      Opposed, nay.

         3                      (There was no response.)

         4                      Message is accepted.

         5                      Secretary will read the last

         6       section.

         7                      THE SECRETARY:  Section 4.  This

         8       act shall take effect on the same date as a

         9       Chapter of the Laws of 1996.

        10                      ACTING PRESIDENT KUHL:  Call the

        11       roll.

        12                      (The Secretary called the roll.)

        13                      THE SECRETARY:  Ayes 58.

        14                      ACTING PRESIDENT KUHL:  The bill

        15       is passed.

        16                      Senator Santiago, why do you

        17       rise?

        18                      SENATOR SANTIAGO:  Mr. President,

        19       I would like to state for the record that had I

        20       been in the chamber on June 12, I would have

        21       voted in the negative on Senate Bill 7532.

        22                      I would also like to state that

        23       had I been in the chamber on the 13th, I would











                                                             
9975

         1       have voted negative on Senate Bill 4413.

         2                      Finally, had I been in the

         3       chamber on July 11, I would have voted in the

         4       negative on Senate Bill 5235.

         5                      I would also like to be recorded

         6       in the affirmative on Senate Bill 7947 and 7948

         7       which just passed this morning.

         8                      Thank you.

         9                      ACTING PRESIDENT KUHL:  Senator

        10       Santiago, without objection and hearing no

        11       objection, you will be recorded in the

        12       affirmative on Calendar Number 7948.

        13                      The record will reflect that had

        14       you been in the chamber when a slow roll call

        15       was taken on Senate Print 4947 that you would

        16       have voted -- in the negative?

        17                      SENATOR SANTIAGO:  Yes.

        18                      ACTING PRESIDENT KUHL:  And the

        19       record will reflect that had you been in the

        20       chamber on June 12 and June 13 and July 11 that

        21       you would you have respectively voted in the

        22       negative on Senate Print Numbers 7532, 4413 and

        23        -- I think it was 5235?











                                                             
9976

         1                      SENATOR SANTIAGO:  Yes, sir.

         2                      ACTING PRESIDENT KUHL:  Record

         3       will so reflect.

         4                      SENATOR SANTIAGO:  Affirmative on

         5       7947.

         6                      ACTING PRESIDENT KUHL:  Senator

         7       Santiago, for the record, you will be recorded

         8       in the negative on those, that's correct.

         9                      7947, you want to be in the

        10       affirmative?

        11                      SENATOR SANTIAGO:  Yes, sir.

        12                      ACTING PRESIDENT KUHL:  Okay.

        13       For the record, the record will reflect that had

        14       you been here when the slow roll call was taken

        15       on 7947 that you would have voted in the

        16       affirmative.

        17                      SENATOR SANTIAGO:  Thank you.

        18                      ACTING PRESIDENT KUHL:  Senator

        19       Alesi.

        20                      SENATOR ALESI:  Mr. President,

        21       will you place Calendar 1786 before the house,

        22       please.

        23                      ACTING PRESIDENT KUHL:  Secretary











                                                             
9977

         1       will read the title to Calendar Number 1786

         2       which was substituted earlier today.

         3                      THE SECRETARY:  Calendar Number

         4       1786, by the Assembly Committee on Rules,

         5       Assembly Bill Number 11329, an act to amend the

         6       Public Health Law and others.

         7                      ACTING PRESIDENT KUHL:  Senator

         8       Alesi.

         9                      SENATOR ALESI:  Mr. President, is

        10       there a message of necessity at the desk?

        11                      ACTING PRESIDENT KUHL:  There is.

        12                      SENATOR ALESI:  I move we accept.

        13                      ACTING PRESIDENT KUHL:  The

        14       motion is to accept the message of necessity at

        15       the desk on Calendar Number 1786.  All those in

        16       favor, signify by saying aye.

        17                      (Response of "Aye.")

        18                      Opposed, nay.

        19                      (There was no response.)

        20                      Message is accepted.

        21                      Any Senator wishing to speak on

        22       the bill?

        23                      SENATOR PATERSON:  Explanation.











                                                             
9978

         1                      SENATOR HANNON:  This is the

         2       Medicaid managed care bill.  This is the bill

         3       that will enable us to make changes in the

         4       existing mandatory Medicaid managed care once we

         5       get the waiver from Washington.  This updates

         6       the types of service delivery components that

         7       have become necessary since we enacted mandated

         8       managed care for Medicaid recipients in 1991.

         9                      It addresses questions of

        10       marketing.  It addresses questions of

        11       enrollment, disenrollment, questions of auto

        12       assignment, questions of quality assurance,

        13       grievance, utilization reviews, special needs

        14       plans.

        15                      Taking all of those, which are

        16       highly important but detailed and somewhat

        17       esoteric concepts, what this does is to really

        18       allow us to let the recipients of Medicaid get

        19       their health care through an orderly, rational

        20       process and not to use an emergency room as

        21       their primary care provider.  This is going to

        22       result in better care for that recipient.  It's

        23       going to result in a better use of the system,











                                                             
9979

         1       and it's going to help the entire state besides.

         2                      I would move the bill, Mr.

         3       President.

         4                      ACTING PRESIDENT KUHL:  Secretary

         5       will read the last section.

         6                      THE SECRETARY:  Section 10.  This

         7       act shall take effect immediately.

         8                      ACTING PRESIDENT KUHL:  Call the

         9       roll.

        10                      (The Secretary called the roll.)

        11                      THE SECRETARY:  Ayes 58.

        12                      ACTING PRESIDENT KUHL:  The bill

        13       is passed.

        14                      Senator Alesi.

        15                      SENATOR ALESI:  Mr. President,

        16       may we go to the original Calendar, Number 22,

        17       please.

        18                      ACTING PRESIDENT KUHL:  On the

        19       original calendar, Calendar No. 70, Secretary

        20       will read the title of Calendar Number 22.

        21                      THE SECRETARY:  Calendar Number

        22       22, by Member of the Assembly Eve, Assembly

        23       Print 5648C, an act to amend the Education Law.











                                                             
9980

         1                      ACTING PRESIDENT KUHL:  Secretary

         2       will read the last section.

         3                      THE SECRETARY:  Section 6.  This

         4       act shall take effect in 30 days.

         5                      ACTING PRESIDENT KUHL:  Call the

         6       roll.

         7                      (The Secretary called the roll.)

         8                      THE SECRETARY:  Ayes 58.

         9                      ACTING PRESIDENT KUHL:  The bill

        10       is passed.

        11                      Senator Alesi.

        12                      SENATOR ALESI:  Mr. President,

        13       may we proceed with Calendar 1146, please.

        14                      ACTING PRESIDENT KUHL:  Secretary

        15       will read Calendar Number 1146, again on the

        16       regular calendar, Calendar No. 70, which was

        17       substituted earlier today.

        18                      THE SECRETARY:  Calendar Number

        19       1146, substituted earlier today, by Member of

        20       the Assembly Lafayette, Assembly Print 3027C, an

        21       act to amend the Vehicle and Traffic Law.

        22                      ACTING PRESIDENT KUHL:  Senator

        23       Alesi.











                                                             
9981

         1                      SENATOR ALESI:  Mr. President, is

         2       there a message?

         3                      ACTING PRESIDENT KUHL:  There is.

         4                      SENATOR ALESI:  I move we accept.

         5                      ACTING PRESIDENT KUHL:  The

         6       motion is to accept the message of necessity on

         7       Calendar Number 1146.  All those in favor,

         8       signify by saying aye.

         9                      (Response of "Aye.")

        10                      Opposed, nay.

        11                      (There was no response.)

        12                      Message is accepted.

        13                      Secretary will read the last

        14       section.

        15                      THE SECRETARY:  Section 5.  This

        16       act shall take effect on the 120th day.

        17                      ACTING PRESIDENT KUHL:  Call the

        18       roll.

        19                      (The Secretary called the roll.)

        20                      THE SECRETARY:  Ayes 58.

        21                      ACTING PRESIDENT KUHL:  The bill

        22       is passed.

        23                      Senator Alesi.











                                                             
9982

         1                      SENATOR ALESI:  Thank you, Mr.

         2       President.  On supplemental Calendar No. 1, will

         3       you place Calendar Number 1787 before the house.

         4                      ACTING PRESIDENT KUHL:

         5       Supplemental No. 1, Secretary will read the

         6       title to Calendar Number 1787.

         7                      THE SECRETARY:  Calendar Number

         8       1787, by the Senate Committee on Rules, Senate

         9       Print 7957, an act to amend the Insurance Law.

        10                      ACTING PRESIDENT KUHL:  Message

        11       was previously accepted.

        12                      Any Senator wishing to speak on

        13       the bill?

        14                      Hearing none, Secretary will read

        15       the last section.

        16                      THE SECRETARY:  Section 28.  This

        17       act shall take effect immediately.

        18                      ACTING PRESIDENT KUHL:  Call the

        19       roll.

        20                      (The Secretary called the roll.)

        21                      THE SECRETARY:  Ayes 58.

        22                      ACTING PRESIDENT KUHL:  The bill

        23       is passed.











                                                             
9983

         1                      SENATOR FARLEY:  Mr. President,

         2       could I be recognized, please?

         3                      ACTING PRESIDENT KUHL:  Senator

         4       Farley.

         5                      SENATOR FARLEY:  I would like to

         6       be recorded in the negative on Calendar Number

         7       22.

         8                      ACTING PRESIDENT KUHL:  Without

         9       objection.  Senator Cook, do you object to

        10       Senator Farley's being recorded in the negative

        11       on Calendar Number 22?

        12                      SENATOR COOK:  I endorse it.

        13                      ACTING PRESIDENT KUHL:  Without

        14       objection, hearing no objection, Senator Farley

        15       will be recorded in the negative on Calendar

        16       Number 22.

        17                      Senator Cook, why do you rise?

        18                      SENATOR COOK:  Same question.

        19                      ACTING PRESIDENT KUHL:  Without

        20       objection, Senator Cook will be recorded in the

        21       negative on Calendar Number 22.

        22                      (The Senate stood at ease.)

        23                      ...At 1:23 p.m....











                                                             
9984

         1                      ACTING PRESIDENT KUHL:  Senate

         2       will come to order, please.  Chair recognizes

         3       Senator Bruno.

         4                      SENATOR BRUNO:  Mr. President,

         5       can we ask for an immediate meeting of the

         6       Finance Committee in Room 332.

         7                      ACTING PRESIDENT KUHL:  There

         8       will be an immediate meeting of the Finance

         9       Committee, immediate meeting of the Senate

        10       Finance Committee in the Majority Conference

        11       Room, Room 332.  Immediate meeting of the Senate

        12       Finance Committee in the Majority Conference

        13       Room, Room 332.

        14                      (The Senate stood at ease from

        15       1:23 p.m. to 1:31 p.m.)

        16                      ACTING PRESIDENT KUHL:  The

        17       Senate will come to order.  Ask the members to

        18       take their places, staff to take their places.

        19                      Senator Bruno.

        20                      SENATOR BRUNO:  Mr. President,

        21       can we at this time take up Calendar Number

        22       1783.

        23                      ACTING PRESIDENT KUHL:  On your











                                                             
9985

         1       Supplemental Calendar Number 1, Secretary will

         2       read the title of Calendar Number 1783, Senate

         3       Print Number 7951, substituted earlier today.

         4                      THE SECRETARY:  Calendar Number

         5       1783, substituted earlier today, by the Assembly

         6       Committee on Rules, Assembly Print 11331, an act

         7       to amend the Workers' Compensation Law.

         8                      SENATOR ONORATO:  Explanation.

         9                      ACTING PRESIDENT KUHL:  Senator

        10       Bruno, an explanation has been asked for by

        11       Senator Onorato, the Acting Minority Leader.

        12                      SENATOR BRUNO:  Yes, Mr.

        13       President, and Senator.  What we have before us

        14       is a very comprehensive Workers' Compensation

        15       reform package for the people of this state.

        16                      We, in New York State, have for

        17       years, suffered by being the second highest

        18       ratepayer in all of the United States for

        19       Workers' Compensation benefits.  Senator -- I'm

        20       not sure he's listening -- Mr. President, I

        21       don't know if Senator Onorato has any interest

        22       in what I'm saying, but I know that he doesn't

        23       want to miss our opening comments because he











                                                             
9986

         1       will want to engage in some of the discussion

         2       relating to this.

         3                      But we have been paying in this,

         4       Senator, about $5 billion in premiums in this

         5       state and we have been paying something in the

         6       neighborhood of 51 to 55 percent higher than the

         7       national average, second highest in the

         8       country.

         9                      While we have been doing that, we

        10       have, number one, been paying workers 47 cents

        11       on the dollar while the national average is 62

        12       cents on the dollar.  Now, think of that:

        13       Second highest premium in the country, and we

        14       paid workers less than the national average.

        15       That has been a disgrace.

        16                      Also, we have been driving jobs

        17       out of this state. Our Workers' Comp' costs

        18       helped us in the past become 50th in this

        19       country in job creation -- 50th -- and that's

        20       something that Governor Pataki, Republican

        21       administration, with our partnering, have moved

        22       from 50th in job creation to 5th in one and a

        23       half years.











                                                             
9987

         1                      We want to be number one.  When

         2       you hear about high taxes that relates to high

         3       spending in this state, over-regulation, we're

         4       doing something about that, today, in this

         5       session, and last year.  This is what the people

         6       of this state have been waiting for.

         7                      So this package rescinds Dole v.

         8       Dow which we in New York State have been the

         9       only state to have in this form.  Forty-nine

        10       other states have had a workers' program without

        11       it.  New York State will now join them, and we

        12       have put in place of the Dole, we have put a

        13       list of grave injuries, a very specific list

        14       that defines grave injuries, and that will help

        15       limit the exposure and consequently the cost to

        16       employers and it will allow employers to invest

        17       more in their businesses and, when they invest

        18       in their businesses, they'll be investing in

        19       workers' safety, and that's a big part of this

        20       package.

        21                      Employers will get credits for

        22       their investments in a safer work place.  There

        23       will be managed care expanded through this











                                                             
9988

         1       bill.  All of us know that the premiums and the

         2       extravagance of those premiums relates to fraud

         3       within the system, people who are on two pay

         4       rolls, three payrolls.

         5                      This will eliminate people on

         6       unemployment also collecting their benefits in a

         7       double way, and it goes on.  So we will be

         8       minimally reducing Workers' Comp' costs in this

         9       state in double digits over the next several

        10       years, and we expect over the next several years

        11       that New York State premiums for Workers' Comp'

        12       will be at least a third less than they are

        13       today.

        14                      We will be competitive with New

        15       Jersey, so we won't have to suffer the

        16       embarrassment of a team like the Giants being

        17       attracted to upstate New York in their training

        18       having to get their Workers' Comp' benefit out

        19       of New Jersey, and that is a disgrace.  They

        20       were able to do that.  Many other businesses

        21       can't do that.  They are trapped.  They are

        22       here.

        23                      So what have those businesses











                                                             
9989

         1       done? They have limited their employment.  They

         2       have not expanded.  They have avoided the costs

         3       for workers' premiums by not hiring when they

         4       could, expanding in other states, and that has

         5       not been productive.  We are correcting that

         6       today.

         7                      Governor Pataki took a leadership

         8       position on this issue.  He made it part of all

         9       the good things that should happen this year in

        10       this state, and we in the Legislature are now

        11       partnering with the Governor in moving this

        12       program forward and having it become law.

        13                      The people out there, the workers

        14       out there, that will benefit directly as a

        15       result of what we are doing here in this

        16       chamber, we then can be proud to be partners

        17       with the Governor in doing what we're doing.

        18       This, along with the largest tax cuts in the

        19       country, in this Republican administration, with

        20       the leadership of Governor George Pataki, 2.5

        21       billion in tax cuts in two years, is helping

        22       turn the economy of this state around from the

        23       failures that we have suffered in the past to











                                                             
9990

         1       the optimism and the growth that we are

         2       experiencing now and will continue to experience

         3       in the future.

         4                      So I want to thank my colleagues

         5       for their support.  I know there are differences

         6       of opinion.  I know there are things that people

         7       would have liked to have had in this bill that's

         8       not there, and I know that there are things in

         9       this bill that some people would rather not see

        10       there.  But this bill was negotiated with the

        11       Assembly, with the Governor, in good faith and

        12       it represents a compromise; but the one thing

        13       that we did not compromise was that the premiums

        14       will be cut.

        15                      Now, next year and the year

        16       after, workers will be safer as a result of what

        17       we do in this state and jobs will be stabilized

        18       or increased as a result of what we are doing

        19       here today.

        20                      Thank you, Mr. President.

        21                      ACTING PRESIDENT KUHL:  Senator

        22       Paterson.

        23                      SENATOR PATERSON:  Mr. President,











                                                             
9991

         1       if the distinguished Majority Leader would yield

         2       for a couple questions.

         3                      ACTING PRESIDENT KUHL:  Senator

         4       Bruno, do you yield to Senator Paterson?

         5                      SENATOR BRUNO:  Yes, Mr.

         6       President.

         7                      ACTING PRESIDENT KUHL:  Senator

         8       yields.

         9                      SENATOR BRUNO:  Mr. President, if

        10       Senator Paterson would just indulge me for one

        11       minute.  We have a logistical problem here, Mr.

        12       President.  Senator DeFrancisco has a personal

        13       problem that he has to tend to.  So I would like

        14       to -- it relates to other than -- and Senator

        15       DeFrancisco as he casts his vote may want to

        16       indulge us, but that will be up to him.  But I

        17       would like to read the last section -

        18                      ACTING PRESIDENT KUHL:  Secretary

        19       will read.

        20                      SENATOR BRUNO:  -- on this bill,

        21       allow him to vote and then we will resume the

        22       discussion.

        23                      ACTING PRESIDENT KUHL:  Secretary











                                                             
9992

         1       will read the last section.

         2                      THE SECRETARY:  Section 90.  This

         3       act shall take effect immediately.

         4                      ACTING PRESIDENT KUHL:  Call the

         5       roll.

         6                      (The Secretary called the roll. )

         7                      ACTING PRESIDENT KUHL:  Senator

         8       DeFrancisco, happy anniversary.  How do you

         9       vote?

        10                      SENATOR DeFRANCISCO:  I guess

        11       it's out of the bag, huh?  I vote yes.  Thank

        12       you.

        13                      ACTING PRESIDENT KUHL:  Senator

        14       DeFrancisco will be recorded in the affirmative.

        15       We're back on debate, Senator Paterson.  Senator

        16       Bruno yields.

        17                      SENATOR BRUNO:  Mr. President,

        18       let me assure you this would have been a problem

        19       had not the good Senator been celebrating his

        20       28th wedding anniversary where there are great

        21       festivities, and for those of us who can make it

        22       we'll be there, so thank you for the open

        23       invitation, Senator.  His wife can accommodate











                                                             
9993

         1       another several hundred, so if we can get there,

         2       we will.

         3                      Thank you, Mr. President.

         4                      Senator Paterson, thank you for

         5       your indulgence. You have a question, and I know

         6       it's easy.

         7                      SENATOR PATERSON:  Yes, it's an

         8       easy question.

         9                      SENATOR BRUNO:  Right.

        10                      SENATOR PATERSON:  Hard to ask it

        11       though of the Majority Leader.

        12                      The list of injuries that would

        13       qualify someone for Dole v. Dow coverage with

        14       which they could bring a suit and implead the

        15       manufacturer and try to establish that the

        16       employer violated regulations, we have severely

        17       cut the type of injuries that would make a

        18       person eligible.

        19                      As a matter of fact, some are

        20       estimating that three-quarters to 90 percent of

        21       the types are -- of injuries that would normally

        22       have met the threshold test for Dole v. Dow suit

        23       will not be covered as a result of this











                                                             
9994

         1       legislation and some of those injuries would be

         2       the loss of a toe, the loss of a finger other

         3       than the -- other than the index finger,

         4       certainly 95 percent blindness or 95 percent

         5       deafness, the lung disease asbestosis, asbestos

         6       disease, cancer, and really a number of other

         7       chronic illnesses, including chronic and severe

         8       back pain.

         9                      Why would we want to take that

        10       option away from workers who sustain some pretty

        11       serious illnesses probably as a result of the

        12       malfeasance of duty of the employer, and I know

        13       this is negotiated, and I know that the Assembly

        14       was part of it, but I wasn't.  I must have been

        15       busy.  Somebody forgot to send me my invitation

        16       to the negotiation because this is exactly what

        17       I would have raised as an issue with respect to

        18       workers and coverage because it's really going

        19       to wipe out the ability of an injured party to

        20       sue where the employer is probably jointly

        21       responsible or in some ways specifically

        22       responsible for the injury.

        23                      SENATOR BRUNO:  Thank you,











                                                             
9995

         1       Senator.  That is a good question.

         2                      The Dole piece in this state -

         3       and again recognize that we're the only state in

         4       the United States that has that in place -

         5       creates by the rating board about a 6.3 percent

         6       increase in the premiums and, if we were to

         7       repeal Dole in its entirety, you would reduce

         8       the premium by about 6.3 percent, so it's of

         9       great consequence.

        10                      What we are doing -- and the good

        11       Senator is right, by repealing Dole which is

        12       totally open-ended, we have substituted a list

        13       of what are considered grave injuries.  He

        14       described some of them, blindness, loss of an

        15       ear, added to the list.  There's a finite list.

        16                      Bottom line, Senator, the injured

        17       worker, as a result of our actions, will not

        18       receive one penny less as a result of our

        19       actions, not one penny will they lose in any

        20       benefit as relates to their ability to sue as a

        21       third party.  Why?  Because Dole allows the

        22       manufacturer who gets sued -- a worker gets

        23       hurts on a machine.  That worker, through











                                                             
9996

         1       Workers' Comp' and through the law, sues the

         2       manufacturer if the machine malfunctions and

         3       collects $100,000.  The worker has that money in

         4       compensation for the injury, plus the monthly

         5       payment through Workers' Comp.  The worker has

         6       the money in the bank.  Dole, in this state only

         7       now, allows that manufacturer to sue the

         8       employer to get back the hundred thousand that

         9       they had to pay the injured worker.

        10                      This is really an attorney's

        11       problem.  It is the business related to the

        12       manufacturer problem. This in no way affects the

        13       injured worker, and we have to be very clear on

        14       that.  So, Senator, I appreciate the question

        15       and I hope my answer clarifies because I know

        16       you're concerned about protecting the rights of

        17       the injured, and so are we, and that's why we've

        18       been very careful in the way this bill has been

        19       structured.

        20                      SENATOR PATERSON:  Thank you, Mr.

        21       President.

        22                      If the leader would yield for

        23       another question?











                                                             
9997

         1                      SENATOR BRUNO:  Yes, Mr.

         2       President.

         3                      ACTING PRESIDENT KUHL:  Senator

         4       continues to yield.

         5                      SENATOR PATERSON:  The

         6       livelihoods of the workers and also the

         7       reputations of the manufacturer, something I've

         8       never really heard mentioned here, are many

         9       times at stake because there's almost a

        10       presumption without a Dole v. Dow suit that the

        11       manufacturer may have been at fault and many

        12       times the manufacturer did exactly what they

        13       were told to do and they're just as happy to

        14       clear their name because they gave the employer

        15       some safety codes, and they were violated.

        16                      Since 1982, Governor Pataki's

        17       research indicates that only one-third of one

        18       percent of the Workers' Compensation cases are

        19       actually qualifying under Dole v. Dow.  So when

        20       one considers the fact that $300 million are

        21       being paid, that it's that kind of industry with

        22       respect to insurance, it's not the Dole v. Dow

        23       recoveries, that are really hurting the











                                                             
9998

         1       premiums, in my opinion, as much as the payments

         2       to the insurance companies and no real

         3       understanding of how much of a profit they may

         4       be making.

         5                      And so, when we look at this

         6       particular issue -- and I left off of the list

         7       of injuries that don't qualify now, body burns

         8       from the head down that are not qualified under

         9       Dole v. Dow -- what we're really looking at, Mr.

        10       Leader, is the issue of workers still receiving

        11       their benefits under Workers' Compensation but

        12       not being able to receive damages, and these

        13       types of injuries are the type that courts

        14       usually will find that there's a greater harm

        15       than just the fact that the person can't work,

        16       that there are damages that are covering their

        17       pain and suffering and the other problems they

        18       might have.

        19                      So my question is, why are we

        20       focusing so much on Dole v. Dow and not enough

        21       on what may be the profit for the insurance

        22       companies as the catalyst for why those who are

        23       trying to reduce, in a sense, what would be











                                                             
9999

         1       reducing payments with the premiums under the

         2       perception that it's Dole v. Dow when it may

         3       very much arise from a different source?

         4                      SENATOR BRUNO:  Well, Senator,

         5       again New York State is the only state in the

         6       United States that has Dole v. Dow in the form

         7       that we have it.  We're the only state in the

         8       United States, and it has been determined that

         9       that is one of the reasons why we have the

        10       second highest premium in all of the United

        11       States.  So I will again state that in the

        12       illustration that you give, if a person is

        13       burned, that person can still sue the employer,

        14       the manufacturer and recover whatever recovery

        15       has been determined appropriate by the courts.

        16       The prohibition would be then that that

        17       manufacturer would not presently be able to sue,

        18       as they can, the employer.  The manufacturer

        19       could not sue, but the injured worker gets

        20       compensated, and what you're describing is a

        21       matter of the courts.  It's a matter of

        22       attorneys litigating and courts deciding what's

        23       appropriate.











                                                             
10000

         1                      ACTING PRESIDENT KUHL:  Senator

         2       Paterson.

         3                      SENATOR PATERSON:  Thank you, Mr.

         4       President.

         5                      If the Senator would continue to

         6       yield.

         7                      SENATOR BRUNO:  Yes, Mr.

         8       President.

         9                      ACTING PRESIDENT KUHL:  Senator

        10       continues to yield.

        11                      SENATOR PATERSON:  If the

        12       manufacturer is not liable, then there wouldn't

        13       be a recovery from the manufacturer.  I just

        14       wanted to point that out and then go on really

        15       to a different area if the leader is willing,

        16       and that is why has our legislation not provided

        17       any -- any benefits to injured workers such as

        18       an increase in benefits or really an expansion

        19       on the concepts of what some workers' safety

        20       diseases, such as carpal tunnel syndrome, are

        21       which would have been helpful to define that and

        22       put that into the legislation and why is there

        23       really no increase in the benefits periods for











                                                             
10001

         1       workers if, as we've been hearing, workers have

         2       been waiting for this legislation?

         3                      SENATOR BRUNO:  Well, this

         4       represents a negotiated piece, Senator, and we

         5       negotiated this bill, and I will remind you,

         6       Senator, that the Senate, with the Governor,

         7       passed a workers' reform package that included

         8       substantial increases for workers in this

         9       state.  We passed that bill in the Senate, and

        10       had that bill passed the Assembly in the form

        11       that we voted for it in this house, the injured

        12       workers in this state would have received a

        13       substantial increase in their benefits.

        14                      As a matter of negotiation, some

        15       things were dropped in trying to do something

        16       meaningful in making us more competitive in this

        17       country, and in defense of taking those out,

        18       what we did do was we gave credits to employers

        19       who encouraged increased workers' safety.  We

        20       increased all the requirements for workers'

        21       safety, so you might say that if the work place

        22       is safer, people would be less likely to get

        23       hurt and they would be less likely to need any











                                                             
10002

         1       compensation, and I know that we would agree

         2       that, if we had the ideal world, we would have

         3       no injuries, consequently no need for Workers'

         4       Comp' in the state; but that's not the world we

         5       live in, so we're dealing in reality.

         6                      SENATOR PATERSON:  Thank you, Mr.

         7       President and thank you, Mr. Leader.

         8                      Mr. President, on the bill.

         9                      ACTING PRESIDENT KUHL:  Senator

        10       Paterson, on the bill.

        11                      SENATOR PATERSON:  I guess that

        12       in any succession or in any statistical

        13       comparison, somebody has to be first, and I'm

        14       very glad that New York State is first.  I'm

        15       very glad that we have understood the plight of

        16       workers in a way that no other state has to this

        17       point, and I hope that we will never diminish

        18       our commitment to workers, and I hope we will

        19       never run away from our responsibilities to

        20       individuals who are injured, particularly from

        21       the malfeasance of duty of other parties when

        22       the other parties are their employers.

        23                      I think that we can not let











                                                             
10003

         1       employers get away with this.  It doesn't happen

         2       that often, as the Governor's research reveals,

         3       but when it does we should not be allowing

         4       anyone to escape their responsibility by trying

         5       to make a situation that's covered in Dole v.

         6       Dow cases appear to be so grandiose that it's

         7       actually changing the numerical value of many of

         8       the statistics and so, when we look at the -

         9       the whole workers' compensation issue, and we

        10       question as to whether or not benefits have

        11       arisen, my understanding is that the negotiation

        12       that would have allowed benefits to rise would

        13       have included many of the AMA guidelines which

        14       would have put a cap on permanent partial

        15       disability, which would have been disastrous to

        16       workers and also would have drawn no distinction

        17       between -- for recovery based on the kind of

        18       work that an individual does which are the types

        19       of negotiating -- which would have been the type

        20       of a negotiation that would have been

        21       unacceptable, and so the only compromise that

        22       could have been reached was not to have any

        23       benefits.











                                                             
10004

         1                      I think that's really quite

         2       unfortunate, because with all of this

         3       concentration on workers, we're forgetting that

         4       these are the taxpayers who provide the broad

         5       revenue base that the state derives its assets

         6       from in the first place.  Even if we were going

         7       to make a comparison, these aren't individuals

         8       who have been in any way benefiting from the -

         9       from the public trough.  If there are cases of

        10       fraud and there are cases of -- of double and

        11       triple counting, we need to ferret them out and

        12       if they're individuals who are breaking the law,

        13       we need to prosecute them.

        14                      We're talking about a relatively

        15       few number of the Workers' Compensation cases

        16       that need assistance, and most of this

        17       legislation is really concentrated on rate

        18       reductions which I think is unacceptable, and I

        19       respect the agreement that was reached by other

        20       legislators here. I understand that a compromise

        21       is a natural form of closure to negotiation and

        22       that everyone doesn't get what they want in com

        23       promise, but also the fact that we're debating











                                                             
10005

         1       these bills gives individuals who don't believe

         2       in the inevitable compromise the opportunity to

         3       alert the public and alert their colleagues to

         4       issues that probably need to be addressed in the

         5       future, and I think that when we take a -- a

         6       next look at the whole Workers' Compensation

         7       system, we're going to have to look at this

         8       because what we've done in this legislation is

         9       give no new benefits to workers but rate

        10       reductions to employers and are probably letting

        11       90 percent of the employers who are already

        12       guilty of not following safety code violations a

        13       way out, while some serious injuries have been

        14       suffered by their employees who were working

        15       there in good faith.

        16                      SENATOR LEICHTER:  Mr. President.

        17                      ACTING PRESIDENT KUHL:  Senator

        18       Leichter.

        19                      SENATOR LEICHTER:  Yeah, Mr.

        20       President. I believe there's an amendment at the

        21       desk.

        22                      ACTING PRESIDENT KUHL:  Senator

        23       Leichter, there is an amendment at the desk. Are











                                                             
10006

         1       you asking that the amendment reading be waived

         2       and you have an opportunity to explain it?

         3                      SENATOR LEICHTER:  Yes, right.

         4       Thank you, Mr. President.

         5                      ACTING PRESIDENT KUHL:  The

         6       reading of it is waived and you are afforded

         7       that opportunity.

         8                      SENATOR LEICHTER:  Mr. President,

         9       Senator Bruno, and the Majority and the Governor

        10       have presented us with a bill that gives good

        11       benefits to the insurance companies, good value

        12       to the employers and nothing -- nothing -- of

        13       meaning to the employees.

        14                      The fact is that there's going to

        15       be in total, considering this bill and other

        16       action we've taken in previous years, a 49

        17       percent decrease in premiums and not one penny

        18       of that goes to the employees.

        19                      I can not accept that.  Senator

        20       Bruno referred to the fact that it was

        21       unfortunate that the workers did not get some

        22       increase in benefits. Well, Senator, it is

        23       unfortunate, and something that we ought to do,











                                                             
10007

         1       something that we ought to take some action on,

         2       and that's precisely what this amendment that I

         3       offer on behalf of the Democratic Conference

         4       will do and, Senator, what we've done is that

         5       we've taken the figures that were in the Senate

         6       Majority bill and I think it's a matter of your

         7       standing as a matter of principle behind those

         8       figures saying you have a concern for the

         9       employees.

        10                      Let me just point out there's

        11       been no increase in the benefits that workers

        12       get under Workers' Compensation since 1990.

        13       What this bill will do, it will provide that by

        14       October 1, 1997, workers would get a maximum of

        15       520, in 1998 it would go up to 540 and then

        16       would level off or plateau out at 560.

        17                      Let me point out that New York -

        18       New York State's benefits are below those of

        19       many states.  If we're going to have a system

        20       that's going to work, there's got to be fairness

        21       for workers, and the bill before us does not

        22       have fairness for workers.  It is manifestly

        23       unfair.











                                                             
10008

         1                      Mr. President, I move the

         2       amendment.

         3                      ACTING PRESIDENT KUHL:  Any other

         4       speaker on the amendment?  Hearing none -

         5       Senator Onorato, on the amendment.

         6                      Senator Onorato, on the

         7       amendment.

         8                      SENATOR ONORATO:  Mr. President,

         9       I join my colleague, Senator Leichter, in

        10       supporting this amendment because this current

        11       bill really doesn't do any justice at all to the

        12       working class of people who are injured on the

        13       job.

        14                      As the Senator aptly pointed out

        15       there's been no increases since 1990, and

        16       workers who are injured many, many years ago are

        17       still receiving the same benefits that they

        18       received in 1975 or 1976.  We've been presenting

        19       bills here day in and day out, increasing cost

        20       of living to pensioners who are receiving

        21       substantial amounts of money for their pensions

        22       on a cost of living increase.  We have yet to

        23       address the injured workers to increase their











                                                             
10009

         1       cost of living increases, and they need it more

         2       than anyone else because they have added costs

         3       because of the injuries that they sustained on

         4       the job, and not to include any increases at all

         5       at the request of the employers, who are willing

         6       to reap the benefits of all of this here, and we

         7       don't deny or begrudge anybody from saving some

         8       money, but we have also always believed in the

         9       American dream where everybody makes a few

        10       dollars, let's all share in the profits.

        11                      This way we're not sharing in the

        12       profits.  We're making the rich a little bit

        13       richer and the poor a lot poorer.  I really urge

        14       my colleagues to support this amendment.

        15                      ACTING PRESIDENT KUHL:  Senator

        16       Connor, on the amendments.

        17                      SENATOR CONNOR:  Thank you, Mr.

        18       President.

        19                      I would urge everyone to support

        20       this amendment.  This so-called Workers' Comp'

        21       reform effort this year is truly amazing.

        22                      The Governor put forth his

        23       proposal, and it contained changes designed to











                                                             
10010

         1       save money, but it provided enhanced benefits

         2       for workers.  The Senate Majority adopted and

         3       passed the Governor's proposal as the Republican

         4       reform proposal.  It did away with Dole v. Dow.

         5       It did other things, but it contained increased

         6       benefits for injured workers.  The Assembly put

         7       out their proposal.  It did different things

         8       than the Republican proposal.  It made other

         9       changes, but it had increased benefits for

        10       workers.

        11                      We on this side of the aisle in

        12       this house put out a version of reform that we

        13       thought would save money.  It made some

        14       modifications, but it had increased benefits for

        15       workers.

        16                      Then we saw a several-week highly

        17       secretive process ostensibly about the budget

        18       that was a hundred and some days overdue, but we

        19       began to read Workers' Comp' was the real

        20       issue.  Workers' Comp' was the real issue, and a

        21       couple days ago emerges what we have now just

        22       seen in the last hour or two in print, the

        23       so-called compromise that resolved all of our











                                                             
10011

         1       problems, that made modifications in Workers'

         2       Comp' and will save employers ostensibly 49 or

         3       50 percent of their cost of Workers' Comp', and

         4       this -- this at this eleventh hour after

         5       secretive negotiations, is missing the one

         6       feature that everyone in the light of day in

         7       public for the last month after month after

         8       month always said we wanted to change it, but we

         9       have increased benefits for workers.

        10                      The secretive late-at-night

        11       spring-on-us-at-the-last-minute compromise, does

        12       one thing that no other proposal in the light of

        13       day did, that no other proposal presented to

        14       editorial boards did, that no other proponent

        15       was willing to stand before their constituents

        16       and discuss before a day or two ago.  It denies

        17       any increase in benefits for workers.

        18                      I urge that we adopt this

        19       amendment and we correct that oversight that

        20       resulted from this secretive process, three men

        21       and the budget, and the faith and safety of all

        22       of our workers in their hands in secret.

        23                      ACTING PRESIDENT KUHL:  The











                                                             
10012

         1       question is on the amendment.  All those in

         2       favor of the amendment signify by saying aye.

         3                      SENATOR CONNOR:  Party vote in

         4       the affirmative.

         5                      ACTING PRESIDENT KUHL:  Secretary

         6       will call the roll.

         7                      SENATOR BRUNO:  Party vote in the

         8       negative.

         9                      (The Secretary called the roll. )

        10                      ACTING PRESIDENT KUHL:  Record

        11       the party line votes, announce the results.

        12                      THE SECRETARY:  Ayes 22, nays 36,

        13       party line vote.

        14                      ACTING PRESIDENT KUHL:  The

        15       amendment is lost.

        16                      Senator Dollinger, on the main

        17       bill.

        18                      SENATOR DOLLINGER:  On the main

        19       bill.  Will Senator Bruno yield just to one

        20       question?

        21                      ACTING PRESIDENT KUHL:  Senator

        22       Bruno, do you yield to one question?

        23                      SENATOR BRUNO:  Yes, Mr.











                                                             
10013

         1       President.

         2                      ACTING PRESIDENT KUHL:  Senator

         3       yields.

         4                      SENATOR DOLLINGER:  Suppose a

         5       worker, Senator, goes into a situation in which

         6       he reasonably believes he's being exposed to

         7       danger at the work place, he thinks it's

         8       dangerous, and his employer nonetheless orders

         9       him to do it.  If he refuses to do it, can he be

        10       fired?  Is there anything in this law that

        11       affects that?

        12                      SENATOR BRUNO:  We're not dealing

        13       in a workers' reform package with the relation

        14       ship between the employer and the employee as

        15       relates to the perception of what's dangerous

        16       and what isn't.  No, we're not attempting to

        17       deal with that issue in the law.

        18                      SENATOR DOLLINGER:  Under this -

        19                      SENATOR BRUNO:  And by the way,

        20       Senator, the law already prohibits an employer

        21       from ordering an employee to do something that

        22       is apparently or considered extremely

        23       dangerous.  You're an attorney -- you are an











                                                             
10014

         1       attorney?

         2                      SENATOR DOLLINGER:  I am.

         3                      SENATOR BRUNO:  And you know

         4       that, I would have thought.

         5                      SENATOR DOLLINGER:  Well, I

         6       guess, again through you, Mr. President, that

         7       raises a question.

         8                      ACTING PRESIDENT KUHL:  Are you

         9       asking Senator Bruno now to answer a second

        10       question.

        11                      SENATOR DOLLINGER:  I am -- well,

        12       he said something that raised a second question

        13       in my mind.  I hoped he would yield.

        14                      ACTING PRESIDENT KUHL:  Senator

        15       Bruno, do you yield to a second question from

        16       Senator Dollinger?

        17                      SENATOR BRUNO:  Yes, Mr.

        18       President.

        19                      ACTING PRESIDENT KUHL:  Senator

        20       yields.

        21                      SENATOR DOLLINGER:  Senator, the

        22       law that you refer to, is that the law of the

        23       state of New York?











                                                             
10015

         1                      SENATOR BRUNO:  Senator Gold, is

         2       that the law of the state of New York?  If you

         3       were defending someone, would you say it's the

         4       law of the state of New York, Senator?

         5                      SENATOR GOLD:  Are you asking me

         6       for my legal opinion?

         7                      SENATOR BRUNO:  Yes.  I'm asking

         8       you, yes, yes.

         9                      SENATOR GOLD:  When I see the pay

        10       offer, I'll tell you.

        11                      SENATOR BRUNO:  Mr. President, I

        12       am told by my learned counsels, who are on

        13       retainer, that it is the present law of New York

        14       State, and that it's case law and that an

        15       employer cannot retaliate against an employee by

        16       case law, and again you're an attorney and I'm

        17       sure that you've studied that in law school.

        18                      SENATOR DOLLINGER:  On the bill,

        19       Mr. President.

        20                      ACTING PRESIDENT KUHL:  Senator

        21       Dollinger, on the bill.

        22                      SENATOR DOLLINGER:  This bill, I

        23       guess, like many others who've said it's a











                                                             
10016

         1       compromise, it's a compromise that I'm going to

         2       support and vote in favor of, but, Senator

         3       Bruno, I just posed that example because,

         4       Senator Bruno, it just seems to me that that's

         5       the one instance that this bill does not address

         6       and that is forcing a worker to choose between

         7       his job and his enjoyment of life because, when

         8       Dole against Dow disappears there, we're going

         9       to be in a situation where an injured worker who

        10       is hurt on the job, if that is because the

        11       employer exposes him to an unreasonable risk, we

        12       may be cutting off the right of that employee to

        13       seek damages which go beyond the mere

        14       replacement of his medical benefits and his lost

        15       wages, that enjoyment of life, those things that

        16       we do every day with our children, with our

        17       families, as we pick up our children, as we hug

        18       our loved ones, all those things that are part

        19       of our enjoyment of life, may not be compensated

        20       when Dole against Dow goes by the boards, and it

        21       seems to me that some day we may revisit this

        22       issue and reopen this door because we'll

        23       recognize that, when employees are exposed by











                                                             
10017

         1       their employers to reckless conduct, to a risk

         2       of severe injury, the old system of Workers'

         3       Compensation will not provide them with adequate

         4       redress.

         5                      That issue, we leave to another

         6       day.  I think we're retreating from that kind of

         7       approach in this bill. I understand it's a

         8       compromise.  I understand there are other good

         9       things that it does with the elimination of

        10       fraud, stronger fraud provisions and other

        11       benefits that will help everyone in this state

        12       perhaps restore greater credibility in this

        13       system, but I'm afraid that we will come back to

        14       this issue of loss of enjoyment of life on your

        15       job and putting our employees in a situation

        16       where they have to choose between keeping their

        17       job and losing their enjoyment of life.

        18                      ACTING PRESIDENT KUHL:  Secretary

        19       will read the last section.

        20                      SENATOR CONNOR:  Not yet.

        21                      ACTING PRESIDENT KUHL:  Senator

        22       Connor.

        23                      SENATOR CONNOR:  Yes, to close











                                                             
10018

         1       for the Minority on the bill.

         2                      ACTING PRESIDENT KUHL:  Senator

         3       Connor, to close.

         4                      SENATOR CONNOR:  Mr. President,

         5       we -- we've seen these last weeks, as I said

         6       before, the budget of the state of New York, at

         7       great expense to our school districts, at great

         8       risk to the credit rating of the state of New

         9       York, held up because the Governor in this state

        10       decided to wage what he described as a war of

        11       principle.

        12                      As a matter of principle, he

        13       wanted to do away with Dole v. Dow.  He wanted

        14       to reduce costs of Workers' Comp' and indeed on

        15       a bipartisan basis every conference in this

        16       Capitol was looking for ways to reduce costs of

        17       Workers' Compensation for employers.

        18                      We urged the people look at the

        19       more than 50 percent of the premium that is

        20       never paid out in benefits to workers, the 50

        21       percent that seems to disappear, yet no one -

        22       no one involved in this secret negotiating

        23       process ever really bit the bullet to take on











                                                             
10019

         1       the insurer, the insurance companies, and say,

         2       Well, after all, it's all about insurance. It's

         3       premiums that they charge.

         4                      What happens to the money? Indeed

         5       we had seen some dramatic decreases in the cost

         6       of Workers' Comp' just through actions taken by

         7       the Insurance Superintendent.

         8                      This bill doesn't do that.  It

         9       leaves untouched the insurance companies.  It

        10       assumes somehow or other that eliminating

        11       certain risks will result in a lowered cost of

        12       premiums.

        13                      Mr. President, I'm still in New

        14       York City waiting for lower hotel room rates

        15       after we repealed the hotel occupancy tax that

        16       was supposed to be passed on to tourists and

        17       increase business.  I don't believe that the

        18       marketplace automatically reacts to actions we

        19       take.  I think, if the insurers can still bring

        20       in the same premium, all we're doing here is

        21       increasing their profits above 50 percent.

        22                      We, in fact, are denying the

        23       workers benefit increases.  We're changing Dole











                                                             
10020

         1       v. Dow in a way that makes no sense.  If it were

         2       a battle of principle, if it were a battle of

         3       principle, then why do we allow a Dole lawsuit

         4       if you're burned above the neck and you're a

         5       worker and you're not if you're burned below the

         6       neck?  Certainly a worker can be injured by very

         7       severe burns below the neck.  They can

         8       disfigure.  They can affect muscle function.

         9       They can, in fact, render someone a cripple from

        10       burns, but that's different than if it ruins

        11       your profile, if it burns you above the neck.

        12                      That makes no sense.  There's no

        13       rationale for that. It's almost as if someone

        14       flipped a coin and split the baby.  Where is

        15       that battle for principle that cost the taxpayer

        16       this delay, cost the school districts the

        17       interest rates, that threatens our credit

        18       rating, that made budgeting in New York more of

        19       a joke than it was before the days of the Pataki

        20       administration, the Governor who ran on the

        21       issue of on-time budgets, of openness in the

        22       process.

        23                      The provision limiting Dole to











                                                             
10021

         1       save what, 3.1 percent of the costs, 3.1 percent

         2       of the premium costs, as opposed to 50 percent

         3       that just disappears, 50 percent profit by the

         4       insurance industry.  But this will save the

         5       expense of workers who suffer from unsafe -- who

         6       suffer serious injury because of lack of safety

         7       in the work place, such as asbestosis, such as

         8       severe burns below the neck, such as any variety

         9       of other severe injuries.

        10                      You know, this makes no sense.

        11       You know, if you lose one finger, you can't sue

        12       but if you lose two -- I can think of some

        13       important fingers, just one of them that could

        14       have curbed someone's ability to function or

        15       communicate if that were the finger that were

        16       lost.

        17                      SENATOR VELELLA:  Would you like

        18       to demonstrate?

        19                      SENATOR CONNOR:  No.  I was

        20       thinking of when we vote, when we vote in the

        21       chamber.

        22                      SENATOR GOLD:  Or like food in an

        23       Italian restaurant.











                                                             
10022

         1                      SENATOR CONNOR:  I wasn't

         2       thinking in Rockefelleresque terms, I would say

         3       to my colleagues over there.  I was thinking of

         4       the way we vote sometimes.

         5                      All right.  Things like cancer,

         6       chronic disease, I mean 95 percent blindness you

         7       can't sue, but a hundred percent blindness you

         8       can.  I mean, you know, injuries that affect

         9       workers for really the rest of their -- their

        10       life and their ability to work, their ability to

        11       enjoy life aren't covered and, you know, we're

        12       back to the basic philosophical question of

        13       Dole.

        14                      This compromise is nothing about

        15       principle. This budget was held up and then

        16       resolved with a -- a determination that has

        17       nothing to do with principles.  This is a defeat

        18       for sound principles, whether you hold the

        19       principles the Governor espoused, that Dole v.

        20       Dow wasn't appropriate in a system of limited

        21       compensation such as Workers' Compensation or

        22       you held the principles that others, including

        23       myself, believe that you had to discourage the











                                                             
10023

         1       kind of willful negligent hazarding of worker

         2       safety that some employers, regrettably and not

         3       most, but some employers were guilty of.  That's

         4       what the Dole cases were about, two conflicting

         5       principles.

         6                      And what did we end up with? What

         7       was it really about? Three percent of the money

         8       at the risk of workers.  Three percent of the

         9       money in worker comp' premiums doesn't compare

        10       in dollar amounts to the amount of money lost by

        11       our localities and school districts by the delay

        12       in this budget.

        13                      Mr. President, it's time we stand

        14       up for values and principles and we vote

        15       consistently with them and not accept last

        16       minute hashed out in secret deals, whether it's

        17       on the budget, Workers' Comp' or anything else.

        18                      I would urge a no vote.

        19                      ACTING PRESIDENT KUHL:  Secretary

        20       will read the last section.

        21                      THE SECRETARY:  Section 90. This

        22       act shall take effect immediately.

        23                      SENATOR CONNOR:  Party vote in











                                                             
10024

         1       the negative with exceptions.

         2                      ACTING PRESIDENT KUHL:  Call the

         3       roll.

         4                      (The Secretary called the roll. )

         5                      ACTING PRESIDENT KUHL:  Record

         6       the Democrat party line vote in the negative

         7       with exceptions.

         8                      SENATOR HOFFMANN:  Explain my

         9       vote, Mr. President.

        10                      ACTING PRESIDENT KUHL:  Senator

        11       Hoffmann, to explain her vote.

        12                      SENATOR HOFFMANN:  Thank you, Mr.

        13       President.

        14                      I have listened over the last

        15       number of years to the employers in my district

        16       complaining bitterly about the cost of doing

        17       business in New York State and, sadly, I've

        18       watched several of them pick up stakes and leave

        19       the state.  As much as I would like to follow

        20       the position espoused by the AFL-CIO and protect

        21       the unique privilege that they enjoy in New York

        22       State through Dole vs. Dow not enjoyed in any

        23       other state, I recognize that for employers the











                                                             
10025

         1       cost of Workers' Compensation as much as any

         2       other single cost frequently is the significant

         3       attributable factor to the loss of jobs.  If we

         4       can't have the jobs, compensation is really a

         5       no-issue at all to us, so I am going to cast my

         6       vote in support of this measure.

         7                      I believe that it could have been

         8       handled in a very different manner. I, like

         9       Senator Connor, am offended that it came up in

        10       the middle of the night by people who have met

        11       in secret. Although there were, I think, valiant

        12       attempts by a task force in this house and a

        13       special committee or subcommittee in the other

        14       house to hold hearings and to engender some

        15       discussion, the final message once again was

        16       crafted by a couple of people who did not even

        17       elicit the input of the rest of us, as Senator

        18       Paterson had said earlier today on another

        19       matter.

        20                      So it is with a great deal of

        21       trust and some mixed feelings that I vote in

        22       favor of this and earnestly hope that it will

        23       fulfill the expectations so loudly boasted by











                                                             
10026

         1       those who are claiming responsibility for it.

         2                      ACTING PRESIDENT KUHL:  Senator

         3       Hoffmann will be recorded in the affirmative for

         4       it.

         5                      Senator Lack to explain his

         6       vote.

         7                      SENATOR LACK:  Thank you, Mr.

         8       President.

         9                      To my knowledge, Senator Connor,

        10       I think the deal was struck at 4:00 o'clock in

        11       the afternoon, not in the middle of the night,

        12       but be that as it may, that's part of still

        13       probably the least understood decision by the

        14       Court of Appeals in the last 25 years and, if

        15       you listen to the floor debate, if you read the

        16       transcript of today's floor debate, it continues

        17       as the least understood decision.

        18                      There is nothing that is

        19       happening here today that at all changes who or

        20       how an employee can sue as a result of a

        21       Workers' Comp'-related injury.  But be that as

        22       it may, probably the most important thing and

        23       why the Governor should be congratulated is that











                                                             
10027

         1       by removing some of the severe onus with respect

         2       to Dole v. Dow, we can finally in this state for

         3       the first time since 1972 start looking at

         4       Workers' Compensation issues purely as matters

         5       between employees and employers and insurers,

         6       the Workers' Compensation system and everybody

         7       else who is involved in that mix, without having

         8       to worry about an outside stimulus such as Dole

         9       v. Dow.

        10                      Senator Connor and members of the

        11       Senate Minority, obviously one reason, if not

        12       the main reason there's not a benefit increase

        13       with respect to this package is that the

        14       negotiations with respect to a large portion of

        15       what we're talking about today in Workers' Comp'

        16       had nothing whatsoever to do with labor or

        17       employee representatives.  It had to do with

        18       attorneys who were conducting litigation with

        19       respect to that, and they're not interested in

        20       benefit increases.

        21                      For the record, the Assembly

        22       bill, when first passed, did not have a benefit

        23       increase.  The first passage of the benefit











                                                             
10028

         1       increase was the Senate bill.  The Assembly then

         2       added it, and I'll just leave, Mr. President,

         3       with one final word.

         4                      Now that we can finally look at

         5       Workers' Compensation, remember please that 42

         6       states in this country index benefits.  It's not

         7       a matter of concern for the state Legislature.

         8       We, of course, are one of the eight states that

         9       do not index benefits.  Senator Bruno in his

        10       comments, the Governor in his comments have

        11       indicated that they're open to further

        12       negotiations with respect to reforming the

        13       Workers' Compensation system.

        14                      Now that we have moved Dole

        15       aside, for the most part we can finally look at

        16       issues between employers, employees and those

        17       matters that are related thereto.  Obviously the

        18       largest outstanding issue from the business

        19       point of view is the AMA guidelines.  It

        20       represents 12 percent of existing premium.

        21       Wouldn't it be nice to start negotiating and

        22       discussing that with respect to indexing

        23       benefits so that we could be out of that











                                                             
10029

         1       business as well and then this Legislature can

         2       finally confine itself to looking at problems of

         3       how government can always improve the Workers'

         4       Compensation system, not at collateral

         5       unnecessary issues.

         6                      I vote aye, Mr. President.

         7                      SENATOR GOLD:  Mr. President.

         8                      ACTING PRESIDENT KUHL:  Senator

         9       Saland, to explain his vote.

        10                      SENATOR SALAND:  Thank you, Mr.

        11       President.

        12                      As I've indicated over the past

        13       several years, as I've spoken to one or more

        14       groups within my district, there is nothing that

        15       has acted as more of a lightning rod on the

        16       issue than has the issue of Workmen's Comp'.

        17                      On one occasion I've had members

        18       of the business community say, I'm certainly not

        19       pleased about the way New York taxes; I'm not

        20       happy about the way New York State relates, but

        21       if you could somehow give me one reform, if you

        22       could somehow give me one thing that would

        23       improve the position of me as an employer in New











                                                             
10030

         1       York State, it would be Workers' Comp', Workers'

         2       Comp', and that's small businesses and large

         3       businesses, and one of the things I've heard

         4       here today as I've sat and listened to the

         5       debate, and I've heard the entire debate, leave

         6       me with the sense that what we're about to do is

         7       to set off alarm bells of great, great horrific

         8       things to occur in the state of New York.

         9                      But let's look at this somewhat

        10       objectively and somewhat realistically.  There

        11       are 50 states in the Union; 49 of them do not

        12       have Dole v. Dow.  I'm not aware of these horror

        13       stories in 49 other states with people lying in

        14       the aisles and the places in which they work, of

        15       people who have somehow or other been shackled

        16       to machinery that is causing them atrocious and

        17       horrifying injuries. I'm not aware of people who

        18       are being preyed upon because they don't have

        19       Dole v. Dow, this third-party suit mechanism, in

        20       their state.  It's truly nothing but a canard.

        21       We are the only one, by way of court decision,

        22       that has this and again, let's look at the

        23       reality of it.











                                                             
10031

         1                      The reality of it is that this

         2       house proposed benefit increases that govern the

         3       proposed benefit increases.  The Assembly in

         4       lock step with the trial bar -- had nothing to

         5       do with unions; this was the trial bar -- this

         6       was a lift for the trial bar, provided

         7       gratuitously -- oh, no, not gratuitously.  I

         8       should not say -- it would definitely be a mis

         9       nomer, on the part of the Assembly Majority.

        10       They wouldn't break away.  Who was going to

        11       pay?  Who was going to pay for the increase? Who

        12       was going to pay for the increase once they

        13       refused to go with Dole v. Dow, once they refuse

        14       to do what 38 other states do in this Union, and

        15       again without horrific work experiences.  38

        16       other states have the AMA standards.

        17                      So what I've heard certainly

        18       says, well, depending upon what constituency

        19       you're endeavoring to market in that, the

        20       reality is that this reform -- and it really

        21       should have been more extensive -- is what

        22       business wants, it's what will help to create

        23       additional dollars in the business community,











                                                             
10032

         1       not to fatten the pockets of business, to

         2       stimulate business, to make business more

         3       competitive, to reduce New York's rates and to

         4       try and make New York what we've claimed that we

         5       are and really haven't been for quite some time,

         6       the Empire State, a place where businesses of

         7       all kinds, all types, can thrive, people will

         8       work and there will be certainly a far more

         9       favorable predisposition to do business in New

        10       York, to stay or to move in.

        11                      Thank you, Mr. President.  I vote

        12       in the affirmative.

        13                      ACTING PRESIDENT KUHL:  Senator

        14       Saland in the affirmative.

        15                      Senator Gold, to explain his

        16       vote.

        17                      SENATOR GOLD:  Thank you very

        18       much. Mr. President.

        19                      Senator Saland said one thing

        20       which I absolutely do agree with and that is

        21       when he used the expression "alarm bell", and I

        22       want to congratulate Senator Bruno, and I want

        23       to congratulate the Governor for understanding











                                                             
10033

         1       the media and understanding the public.

         2                      Dole v. Dow is the alarm bell out

         3       there and everybody is zeroing in on it, except

         4       it really is minimal in terms of what this bill

         5       is about and what you're all trying to do.

         6                      There was a proposal that was

         7       drafted by Senator Connor and by the Minority

         8       which would have been helpful in this area, and

         9       I believe the figure is something like 2.2

        10       percent as to what the premium cut would have

        11       been.  Under this proposal it's 3 percent, so

        12       you go convince the public if they want to

        13       listen that the budget had to be late for

        14       eight-tenths of one percent of this premium.

        15                      The truth of the matter is, the

        16       truth of the matter is that the big money that

        17       could have been saved isn't being saved because

        18       you won't go after the companies. That's all,

        19       but you win the rhetoric war.  Why do you win

        20       the rhetoric war? Because by throwing out that

        21       alarm bell of Dole v. Dow, Dole v. Dow, that's

        22       what you get everybody to focus in on. You get

        23       everybody hot and bothered over it, and you let











                                                             
10034

         1       remain the insurance company profits, what have

         2       you.  And why, in fact.  Will you win this in

         3       the press? Because the bottom line is that the

         4       newspapers have an interest in this particular

         5       piece of legislation, and they can benefit by

         6       it, so they'll write their editorial.  They'll

         7       write their editorials and they will tell the

         8       public that this is good, but they don't put the

         9       little hook in there that they would expect us

        10       to do when there's a conflict of interest but

        11       they have a conflict of interest so that is the

        12       bottom line.

        13                      You have managed very

        14       successfully to frame this argument around Dole

        15       v. Dow, Dole v. Dow, when the fact is that it is

        16       not the major cause of premium escalation in

        17       this field, and it is not the area where you

        18       could save benefits the most, and what is worse

        19       is while you focus everybody on Dole v. Dow, you

        20       cut out the part of the bill that would have

        21       given workers something by increased benefits.

        22                      I vote no.

        23                      ACTING PRESIDENT KUHL:  Senator











                                                             
10035

         1       Gold will be recorded in the negative.  Senator

         2       Marcellino.

         3                      SENATOR MARCELLINO:  Yes, Mr.

         4       President, to explain my vote.

         5                      I rise to congratulate the

         6       Governor, congratulate Senator Bruno for

         7       negotiating what seems to be a great compromise

         8       on the issue of Workmen's Compensation providing

         9       a system which would allow this state to become

        10       competitive, to come back to being competitive

        11       with other states, to have a possibility of, and

        12       a chance to revise a system which by all

        13       estimates is a failed system.

        14                      Now, we've heard certain comments

        15       here that this debate was held in the middle of

        16       the night and that somehow these agreements were

        17       done in secret, that they were done in the

        18       middle of the night, that no one knew about it.

        19       It was my understanding that Senator Spano and

        20       the Labor Committee went all over this state and

        21       held approximately 13 hearings on just this

        22       issue, Workmen's Compensation, and how to revise

        23       it.  Were they all held in the middle of the











                                                             
10036

         1       night?  Were they all held in closets where no

         2       one knew about it?  I don't understand that.

         3                      This chamber provided increased

         4       benefits to workers.  It was the other chamber

         5       that took them out, not this chamber, the other

         6       chamber, in the negotiations.  Dole v. Dow

         7       doesn't protect workers; it protects lawyers.

         8       We all know that.  To say that it inhibits a

         9       worker's right to sue is wrong, and every lawyer

        10       in the room knows it.

        11                      It doesn't infringe upon their

        12       right to sue at all.  This bill doesn't do

        13       anything like that either. Once again, as in the

        14       bond act before, you talk the talk but you don't

        15       walk the walk.  It's important.  This

        16       legislation is good legislation and sound

        17       legislation.

        18                      To my knowledge, it's now 2:30 in

        19       the afternoon.  If it wasn't cloudy outside, I'm

        20       sure the sun would be out and maybe some of my

        21       colleagues would see a little clearer.

        22                      I vote aye.

        23                      ACTING PRESIDENT KUHL:  Senator











                                                             
10037

         1       Marcellino will be recorded in the affirmative.

         2                      Senator Stachowski, to explain

         3       his vote.

         4                      SENATOR STACHOWSKI:  Explain my

         5       vote.  I -- I'm just fascinated, everybody who

         6       is for the worker, the Assembly is against the

         7       worker, they're for the trial lawyers.  Two

         8       thirds of the three people involved in the

         9       negotiations were for increased benefits, but we

        10       got a bill with no increased benefits.

        11                      Thank God, Senator Marcellino,

        12       that we're not doing the bill that was discussed

        13       throughout the state of New York at all those

        14       wonderful hearings at which, we might add that

        15       in case you forgot and I mentioned it before,

        16       that wonderful employer, that lady that took the

        17       covers off the machine where the woman lost her

        18       two hands, came in and spoke as strongly as you

        19       just did in favor of gettin' rid of Dole v. Dow

        20       and I don't have a problem with that.

        21                      The fact is that I'm not a big

        22       trial lawyer supporter.  That's not why I'm

        23       standing, but the fact is that that lady lost











                                                             
10038

         1       her hands.  This employer was going to get that

         2       machine out of there, and nobody would have

         3       known about that lady if this woman that owned

         4       that company that took the guards off didn't

         5       testify at Senator Spano's hearing, and

         6       incidentally, as I said before, the effect of it

         7       was when they put on what would be like a

         8       temporary thumb on the end of her arm, the

         9       insurance company said she could go back to work

        10       at light duty.  Great system, no loss there.

        11       This woman is wonderful.  If she didn't

        12       eventually happen to win the lawsuit, she would

        13       have been a great -- I don't know what she'd do

        14       with her arm, with a thing on it, but she'd be

        15       doing light duty some place but in the insurance

        16       company, I'm sure not for that woman that took

        17       the guards off the machine and said we should

        18       eliminate this.

        19                      I've worked with Senator Lack and

        20       Senator Spano trying to find something to

        21       replace Dole v. Dow because I'm not interested

        22       in lawsuits.  I'm just interested in protecting

        23       workers. If I'm wrong then, if this proves to be











                                                             
10039

         1       it, then I'm wrong in voting no today.  I don't

         2       know that this is a system that's going to work

         3       mainly because of the system that says, if you

         4       burn your cheek, you can have a lawsuit but if

         5       you burn a lot more important parts of your body

         6       you get nothing.  I find that truly amazing,

         7       truly amazing.

         8                      Well, no, not exactly, important

         9       parts.  Anyway, it's just fascinating to me that

        10       everybody was so supportive of the workers in

        11       all the cheerleading parts of this battle.  We

        12       put the bills out, say we're for increased

        13       benefits.  We had the hearings that say we want

        14       increased benefits, all through the negotiations

        15       which, incidentally, weren't exactly open even

        16       though whatever time of the day they took place

        17       and I know you didn't know any more what was

        18       goin' on in the Workmen's Comp' bill in those

        19       negotiations than I did.  You can say you did

        20       now, but that would be -- it would really be, as

        21       Senator Saland said, a canard and I happened to

        22       read the meaning of "canard" watching "The

        23       Natural" a few years ago because it was filmed











                                                             
10040

         1       in Buffalo, and it was one of the great lines in

         2       the movie.

         3                      However, I hope that we're wrong,

         4       I hope you're right that this bill is going to

         5       change the system and the workers aren't going

         6       to be hurt by it, but I find it difficult when

         7       we make a big change like is in this bill and

         8       it's in the whole system, which would do nothing

         9       for the working man.

        10                      I have nothing against the

        11       employers.  I just happen to think that the

        12       premiums they pay are unbelievable. I can't

        13       understand how they grew to what they grew for

        14       the little benefit increase that the people got

        15       and if this does it, I'm wrong, and I

        16       congratulate you and salute you.  However, I

        17       can't vote for a bill that does nothing for the

        18       working guy and only helps out to my initial

        19       glance the employers that deserve it and the

        20       insurance companies that nobody seems to want to

        21       look at.

        22                      I vote no.

        23                      ACTING PRESIDENT KUHL:  Senator











                                                             
10041

         1       Stachowski will be recorded in the negative.

         2                      Senator DiCarlo to explain his

         3       vote.

         4                      SENATOR DiCARLO:  Thank you, Mr.

         5       President.  I will be brief.

         6                      Just let me preface my remarks

         7       with my father is an attorney, my oldest brother

         8       is an attorney, my next oldest brother is an

         9       attorney.  I am not, but let me say something.

        10       This has not -- this has not turned out to be a

        11       labor/worker issue.  This has become a battle

        12       between lawyers and their profits. It's unfor

        13       tunate that that's what's held this up, and the

        14       reason that I know that, or I believe I know

        15       that to be true, is a personal experience that

        16       I've had, and that was some of letters that have

        17       been circulated and sent to a lot of trial

        18       lawyers in this state attacking me and, in this

        19       letter, they talk about Workers' Comp' reform

        20       and they say please contribute money to my

        21       opponent because Senator DiCarlo is a number one

        22       opponent to the trial lawyers in the state of

        23       New York, and they do not mention the poor











                                                             
10042

         1       injured worker.  They did not mention the fact

         2       that workers should be compensated in a better

         3       way, but they talk about their own profits, so

         4       send us money to defeat Senator DiCarlo, an

         5       enemy to the trial lawyers in this state.

         6                      This is nonsense.  The attacks

         7       talking about us doing bad things to injured

         8       workers are nonsense.  The fact of the matter is

         9       Dole v. Dow is nothing but a trial lawyer issue

        10        -- money in their pockets, and that's why this

        11       has been held up and that's why the workers

        12       didn't get increases. That's why the workers

        13       didn't get what they deserved, and shame on the

        14       other house for making that happen.

        15                      I vote yes.

        16                      SENATOR LEICHTER:  Mr.

        17       President.

        18                      ACTING PRESIDENT KUHL:  Senator

        19       DiCarlo will be recorded in the affirmative.

        20                      Senator Leichter, to explain his

        21       vote.

        22                      SENATOR LEICHTER:  Yeah, Mr.

        23       President.











                                                             
10043

         1                      After hearing still a commercial

         2       that it's all trial lawyers and how much the

         3       Majority loves the working people, let's get

         4       back to reality.  If you want to do something

         5       for the working people, there's nothing to

         6       prevent you from having supported the amendment

         7       that I introduced saying we will not support a

         8       bill that doesn't have increased benefits.

         9                      It's not a matter of the trial

        10       lawyers. It's a matter of whether you're

        11       beholden to the insurance companies or the

        12       employers or whether you want to help the

        13       workers. It's as simple as that.  Nobody is

        14       binding your hands. Suddenly this Majority is so

        15       powerless.  Oh, if only we had the power, if

        16       only we could do this.

        17                      Well, you had that power and you

        18       can do it, and I think we ought to get away from

        19       this fantasy.  Earlier I heard the Majority

        20       Leader go on how this economic program of

        21       Governor Pataki and the tax cuts, the Workers'

        22       Compensation, is generating all this wonderful

        23       economic activity.  Nonsense!  Baloney!











                                                             
10044

         1       Balderdash!

         2                      The fact is that the economy in

         3       New York State was creating more jobs in the

         4       last year of Governor Cuomo.  You've given tax

         5       cuts that basically benefit the rich and you're

         6       now passing a Workers' Compensation bill that

         7       benefits employers, that benefits mainly

         8       insurance companies, and that sticks it to the

         9       working people of this state.

        10                      Mr. President, I vote in the

        11       negative.

        12                      ACTING PRESIDENT KUHL:  Senator

        13       Leichter will be recorded in the negative.

        14                      Senator Bruno to close and

        15       explaining his vote.

        16                      SENATOR BRUNO:  Mr. President, to

        17       explain my vote.

        18                      We've been listening to a lot of

        19       discussion, a lot of debate, a lot of

        20       well-intentioned statements; but I want to

        21       conclude by saying that yes, the Governor did

        22       make this a priority for all the reasons that

        23       we've talked about that are positive.  The











                                                             
10045

         1       bottom line was to improve the climate for

         2       workers, worker safety and workers' benefits and

         3       Workers' Compensation, and to create jobs.

         4       That's the bottom line.

         5                      Mr. President, I want to remind

         6       everyone in this chamber that we passed a

         7       Workers' Compensation reform bill previous to

         8       this one with the Governor's support.  The

         9       Governor's program bill, that had injured worker

        10       increases in it from 400 to $560 dollars over

        11       three years.  That was negotiated out in the

        12       other house and in the other house they passed a

        13       Workers' Comp' reform package that had no

        14       benefit increases in it for workers, none other

        15       than those that might be realized through any

        16       savings that were not apparently there.

        17                      So let's tell it like it is.  We

        18       in this house passed a bill that increased

        19       benefits for workers substantially.  The bill

        20       that passed the other house had no increases in

        21       it.  This was a compromise, but it's not over.

        22       Injured workers will benefit substantially from

        23       what has taken place here today, so I'm happy to











                                                             
10046

         1       vote aye.

         2                      ACTING PRESIDENT KUHL:  Senator

         3       Bruno, in the affirmative.

         4                      Announce the negatives and the

         5       results.

         6                      THE SECRETARY:  Ayes 39, nays 19,

         7       party vote with exceptions.

         8                      ACTING PRESIDENT KUHL:  The bill

         9       is passed.

        10                      Senator Bruno.

        11                      SENATOR BRUNO:  Can we at this

        12       time ask for an immediate meeting of the Rules

        13       Committee in Room 332.

        14                      ACTING PRESIDENT KUHL:  There

        15       will be an immediate meeting of the Rules

        16       Committee, immediate meeting of the Rules

        17       Committee in the Majority Conference Room, Room

        18       332.  Immediate meeting of the Rules Committee

        19       in the Majority Conference Room, Room 332.

        20                      Senator Dollinger, why do you

        21       rise?

        22                      SENATOR DOLLINGER:  Mr.

        23       President, earlier there was a bill that was











                                                             
10047

         1       approved by a party vote with exceptions.  I

         2       didn't quite understand that.  It was on

         3       Calendar Number 1779. I'd ask that my vote be

         4       changed from the negative to the affirmative on

         5       that and ask unanimous consent to have my vote

         6       changed on that calendar number.

         7                      ACTING PRESIDENT KUHL:  Senator

         8       Paterson, do you have any objection to Senator

         9       Dollinger changing his vote from negative to

        10       affirmative on the Calendar Number 1779?

        11                      SENATOR PATERSON:  Not at all,

        12       Senator.

        13                      ACTING PRESIDENT KUHL:  Senator

        14       Bruno, did you have any objection?

        15                      SENATOR DOLLINGER:  Thank you,

        16       Mr. President.  I wasn't aware of that.

        17                      ACTING PRESIDENT KUHL:  Senator

        18       Bruno.

        19                      SENATOR BRUNO:  Mr. President,

        20       can we at this time ask for an immediate meeting

        21       of the Rules Committee in Room 332.

        22                      ACTING PRESIDENT KUHL:  There

        23       will be an immediate meeting of the Rules











                                                             
10048

         1       Committee in Room 332.  An immediate meeting of

         2       the Rules Committee in Room 332.

         3                      Senator Paterson, do you have any

         4       objection to Senator Dollinger changing his vote

         5       from the negative to the affirmative on Calendar

         6       Number 1779?

         7                      Hearing no other objections,

         8       Senator Dollinger.

         9                      SENATOR DOLLINGER:  Thank you,

        10       Mr. President.  I believe just for clarity, I

        11       believe that was a repeat of a prior vote that I

        12       had voted in the negative on, and I wasn't aware

        13       of that.

        14                      ACTING PRESIDENT KUHL:  You're

        15       absolutely correct, Senator Dollinger.  The

        16       prior vote was a slow roll call.  Okay.

        17                      SENATOR DOLLINGER:  Correct.

        18                      ACTING PRESIDENT KUHL:  And then

        19       the Majority Leader -- I believe there was a

        20       slow roll call.  The Majority Leader then -- the

        21       Minority Leader and the Majority Leader agreed

        22       to the same vote on the subsequent bill on which

        23       you were recorded in the negative.  You will be











                                                             
10049

         1       recorded in the affirmative with the consent of

         2       the Minority Leader and the Majority Leader.

         3                      SENATOR DOLLINGER:  Thank you,

         4       Mr. President.

         5                      ACTING PRESIDENT KUHL:  Senator

         6       Bruno.

         7                      SENATOR BRUNO:  Mr. President,

         8       can we at this time take up Calendar Number

         9       1785.

        10                      ACTING PRESIDENT KUHL:  Secretary

        11       will read the title to Calendar Number 1785.

        12       It's on Supplemental Calendar No. 1.

        13                      THE SECRETARY:  Calendar Number

        14       1785, substituted earlier today, by the Assembly

        15       Committee on Rules, Assembly Print 11338, an act

        16       to amend a chapter of the laws of 1996.

        17                      SENATOR HOFFMANN:  Explanation.

        18                      ACTING PRESIDENT KUHL:  The

        19       message was previously adopted.

        20                      Senator Bruno, an explanation of

        21       Calendar Number 1785 has been requested by

        22       Senator Hoffmann.

        23                      SENATOR BRUNO:  Mr. President,











                                                             
10050

         1       what this legislation does, it frees up about

         2       $98 million out of the reserves as a result of

         3       the legislation that we just passed.  Because we

         4       are limiting the exposure and limiting the

         5       consequent expense, we are freeing up by

         6       agreement in both houses and with the Governor,

         7       actuarially, $98 million that will be used on

         8       behalf of all of the people of this state.

         9                      SENATOR LEICHTER:  Mr. President.

        10                      ACTING PRESIDENT KUHL:  Senator

        11       Hoffmann had the floor, Senator Leichter.

        12                      Senator Hoffmann.

        13                      SENATOR HOFFMANN:  Thank you, Mr.

        14       President.  I have some great misgivings about

        15       this measure and really don't feel that it is

        16       appropriate to support this because this does

        17       something that we have been criticized so many

        18       times before for doing.

        19                      It permits some other entity or

        20       organization in this state to act as our revenue

        21       agent.  As a means of raising $98 million for

        22       the General Fund, we would be putting in effect

        23       a special surcharge on the Workers' Comp'











                                                             
10051

         1       insurance carriers.

         2                      Mr. President, I will suspend

         3       debate while we have a distinguished visitor on

         4       the floor, if that's the will of the chair,

         5       while we take time to welcome the Governor.

         6                      ACTING PRESIDENT KUHL:  Well, we

         7       allow former colleagues as we have in the past,

         8       Senator Hoffmann, to have the opportunity of the

         9       floor, but we don't usually suspend debate, so

        10       the floor is still yours, Senator Hoffmann.

        11                      SENATOR HOFFMANN:  Happy to

        12       welcome our distinguished former colleague back

        13       to the Senate chamber.

        14                      Much as we would all like to have

        15       $98 million mysteriously appear for the General

        16       Fund to do many greatly needed services around

        17       this state, I think there is a significant

        18       question.  Based upon the debate that we have

        19       already had and some of the sketchy information

        20       available from actuaries or anybody else who is

        21       involved in this, this is purely speculative.

        22       We really can't be sure that the insurance

        23       carriers will realize a savings in that amount











                                                             
10052

         1        -- can we? -- nor is it appropriate for us to

         2       create a new form of taxation on them simply as

         3       a budget balancing gimmick.  But that is all too

         4       often the case especially in the closing days of

         5       session.

         6                      I did not want to let this

         7       measure go by unnoted because it sticks out like

         8       a sore thumb.  While we may have done something

         9       noble and, in fact, a real compromise in

        10       creating a workers' comp solution, while the

        11       NYPHRM measure is the result of considerable

        12       work and is probably one that we will receive

        13       great recognition for, this unfortunately sets

        14       the clock back and harkens to an era where this

        15       Legislature has been criticized roundly for

        16       fiscal gimmickry, back-door borrowing and

        17       forcing businesses in this state to act as

        18       revenue agents for the State of New York.

        19                      It is the type of nuisance

        20       taxation that drives employers out of the State

        21       of New York; therefore, I will be registering a

        22       no vote on 1785, Mr. President.

        23                      Thank you.











                                                             
10053

         1                      ACTING PRESIDENT KUHL:  Any other

         2       Senators wishing to speak on Calendar Number

         3       1785?

         4                      Senator Leichter.

         5                      SENATOR LEICHTER:  Mr. President,

         6       this is -- this is really pure Albany chutzpah.

         7       Here we just said we've got to reduce the burden

         8       on the employers and we need -- we're not in a

         9       position to help the workers.  Then we say look

        10       at the wonderful thing we've done in freeing up

        11       money, so we raid that $98 million that could

        12       have gone to give more benefits to workers, $98

        13       million, which I understand is just about equal

        14       with what the projected savings are in making

        15       the changes in Dole versus Dow.

        16                      I realize it's a little hard to

        17       discuss this.  We have our distinguished former

        18       colleague here, the Governor, and all I can say

        19       when he was here as a state Senator, he used to

        20       vote against these gimmicks.  He spoke against

        21       them.  He thought they were wrong.  I guess

        22       things change when you get to the second floor,

        23       but if there's ever an example of playing











                                                             
10054

         1       sleight of hand, this is really it.  This is

         2       worse than the three-card monte people that you

         3       find on Fifth Avenue.

         4                      We have just done, by the

         5       previous bill, all these wonderful things, so

         6       Senator Bruno tells us, and then with the next

         7       bill we grab this money, one shot, put it into

         8       general revenue, and I hear Senator Bruno say

         9       what a wonderful thing we're doing for the

        10       taxpayers.  We have just stolen this money.

        11       It's terrible.

        12                      SENATOR DOLLINGER:  Can we have

        13       some order, Mr. President?

        14                      ACTING PRESIDENT KUHL:  Senator

        15       Dollinger, do you want to speak on this bill?

        16                      SENATOR DOLLINGER:  Can we have

        17       some order?

        18                      ACTING PRESIDENT KUHL:  Is there

        19       any other Senator wishing to speak on the bill?

        20                      Hearing none, the Secretary will

        21       read the last section.

        22                      THE SECRETARY:  Section 3.  This

        23       act shall take effect on the same date as a











                                                             
10055

         1       chapter of the laws of 1996.

         2                      ACTING PRESIDENT KUHL:  Call the

         3       roll.

         4                      (The Secretary called the roll.)

         5                      SENATOR PATERSON:  Party vote in

         6       the negative.

         7                      SENATOR DOLLINGER:  Mr.

         8       President, just to explain my vote.

         9                      ACTING PRESIDENT KUHL:  Senator

        10       Paterson, did you wish to record -- Senator

        11       Paterson, did you wish to record a party line

        12       vote in the negative?

        13                      SENATOR PATERSON:  Yes, Mr.

        14       President, a party line vote in the negative.

        15                      SENATOR DOLLINGER:  To explain my

        16       vote.

        17                      ACTING PRESIDENT KUHL:  Secretary

        18       will record the Democrat party line vote in the

        19       negative.

        20                      Chair recognizes Senator

        21       Dollinger to explain his vote.

        22                      SENATOR DOLLINGER:  Mr.

        23       President, I welcome our distinguished guest, as











                                                             
10056

         1       well.  I think he and I were the only guys, with

         2       Senator Jones, who voted against a whole series

         3       of budgets that were laden with one-shots just

         4       like this one.

         5                      I would extend him the invitation

         6       since he's in the chamber to come back one more

         7       time, take that seat across from me and boldly

         8       do what he did when he was here:  Vote against

         9       all these one-shots just like this raiding these

        10       funds created by other people's money to use for

        11       the state of New York.

        12                      I'd invite the Governor -- he's

        13       got his chance -- veto this bill.  Do what you

        14       would have done sitting in that chair in this

        15       chamber.  I extend him that option.  I extend

        16       him that choice now.  I know he would be joining

        17       with the Minority on this vote in this case.

        18                      ACTING PRESIDENT KUHL:  Senator

        19       Dollinger will be recorded in the negative.

        20                      Senator Paterson, why do you

        21       rise?

        22                      SENATOR PATERSON:  Mr. President,

        23       I am also recorded in the negative.  I don't











                                                             
10057

         1       even know who I'm talking to now, Mr. President,

         2       but as long as you are hearing me I want to be

         3       recorded in the negative.  This $98 million

         4       return to the General Fund which expires in

         5       March of 1997 is really one last drink before we

         6       leave this process, and so how we could offer a

         7       piece of legislation and then in a sense

         8       diminish it by this amendment is just beyond me,

         9       because we're stating policy on one hand and

        10       then taking the teeth out of it in another.

        11                      There is a total of $120 million

        12       that would be returned from the Dole v. Dow

        13       changes, which I opposed in the first place.

        14       Ninety-eight million of it will go to the

        15       General Fund, not proportionally but based on

        16       the reserves the employers get from Dole v.

        17       Dow.  So the employers aren't even going to

        18       benefit in this first year.  It's one last raid.

        19                      It's one last perpetuation of

        20       something that we got up here today and said

        21       that we opposed, and I'm opposed to it.

        22                      I vote no, Mr. President.

        23                      ACTING PRESIDENT KUHL:  Announce











                                                             
10058

         1       the results.

         2                      THE SECRETARY:  Ayes 26, nays 22,

         3       party vote.

         4                      ACTING PRESIDENT KUHL:  The bill

         5       is passed.

         6                      Senator Present.

         7                      SENATOR PRESENT:  Mr. President,

         8       may we return to reports of standing committees.

         9       I believe you have one from the Finance

        10       Committee at the desk.

        11                      ACTING PRESIDENT KUHL:  We do,

        12       Senator Present.

        13                      We will return to the order of

        14       standing committees, and ask that the Secretary

        15       read the report of the Senate Finance Committee.

        16                      THE SECRETARY:  Senator Stafford,

        17       from the Committee on Finance, reports the

        18       following bills:

        19                      Senate Print 6832B, by Senator

        20       Rath, an act to amend the Tax Law;

        21                      7953, by the Senate Committee on

        22       Rules, an act to amend the Environmental

        23       Conservation Law;











                                                             
10059

         1                      Assembly Print 11335, by the

         2       Assembly Committee on Rules, an act to amend the

         3       Education Law;

         4                      Assembly 11336A, by the Assembly

         5       Committee on Rules, an act to amend the

         6       Transportation Law; and

         7                      Assembly Print 11340, by the

         8       Assembly Committee on Rules, an act to amend the

         9       Public Authorities Law.

        10                      All bills ordered directly for

        11       third reading.

        12                      ACTING PRESIDENT KUHL:  Senator

        13       Present.

        14                      (There was no response.)

        15                      Without objection, the report of

        16       the Senate Finance Committee bills are reported

        17       directly to third reading.

        18                      Senator Present.

        19                      SENATOR PRESENT:  Mr. President,

        20       can we take up Supplemental Calendar No. 2

        21       noncontroversial.

        22                      ACTING PRESIDENT KUHL:  Secretary

        23       will read the noncontroversial reading of











                                                             
10060

         1       Supplemental Calendar No. 2, which is on all of

         2       the members' desks as are all of the bills that

         3       are included on the calendar.

         4                      Secretary will read.

         5                      THE SECRETARY:  Calendar Number

         6       1789, by Senator Rath, Senate Print 6832B, an

         7       act to amend the Tax Law.

         8                      ACTING PRESIDENT KUHL:  Senator

         9       Present.

        10                      SENATOR PRESENT:  Mr. President,

        11       is there a message of necessity at the desk?

        12                      ACTING PRESIDENT KUHL:  There is.

        13                      SENATOR PRESENT:  I move we

        14       accept it.

        15                      ACTING PRESIDENT KUHL:  Motion is

        16       to accept the message of necessity at the desk

        17       on Calendar Number 1789.  All those in favor,

        18       signify by saying aye.

        19                      (Response of "Aye.")

        20                      Opposed, nay.

        21                      (There was no response.)

        22                      Message is accepted.

        23                      The Secretary will read the last











                                                             
10061

         1       section.

         2                      THE SECRETARY:  Section 4.  This

         3       act shall take effect immediately.

         4                      ACTING PRESIDENT KUHL:  Call the

         5       roll.

         6                      (The Secretary called the roll.)

         7                      Announce the results when

         8       tabulated.

         9                      THE SECRETARY:  Ayes 57, nays 1,

        10       Senator Leichter recorded in the negative.

        11                      ACTING PRESIDENT KUHL:  The bill

        12       is passed.

        13                      THE SECRETARY:  Senator Bruno

        14       moves to discharge from the Committee on Finance

        15       Assembly Bill Number 11337 and substitute it for

        16       the identical Third Reading Calendar 1790.

        17                      ACTING PRESIDENT KUHL:

        18       Substitution is ordered.

        19                      Secretary will read the title.

        20                      THE SECRETARY:  Calendar Number

        21       1790, by the Assembly Committee on Rules,

        22       Assembly Print 11337, an act to amend the

        23       Environmental Conservation Law.











                                                             
10062

         1                      ACTING PRESIDENT KUHL:  Senator

         2       Present.

         3                      SENATOR PRESENT:  Mr. President,

         4       is there a message of necessity at the desk?

         5                      ACTING PRESIDENT KUHL:  There is.

         6                      SENATOR PRESENT:  I move we

         7       accept the message.

         8                      ACTING PRESIDENT KUHL:  Motion is

         9       to accept the message of necessity at the desk

        10       on Calendar Number 1790.  All those in favor,

        11       signify by saying aye.

        12                      (Response of "Aye.")

        13                      Opposed, nay.

        14                      (There was no response.)

        15                      The message is accepted.

        16                      The Secretary will read the last

        17       section.

        18                      THE SECRETARY:  Section 2.  This

        19       act shall take effect on the same date as a

        20       chapter of the laws of 1996.

        21                      ACTING PRESIDENT KUHL:  Call the

        22       roll.

        23                      (The Secretary called the roll.)











                                                             
10063

         1                      Announce the results when

         2       tabulated.

         3                      THE SECRETARY:  Ayes 57, nays 1,

         4       Senator Leichter recorded in the negative.

         5                      ACTING PRESIDENT KUHL:  Bill is

         6       passed.

         7                      Secretary will continue to read.

         8                      THE SECRETARY:  Calendar Number

         9       1791, by the Assembly Committee on Rules,

        10       Assembly Print 11335, an act to amend the

        11       Education Law.

        12                      ACTING PRESIDENT KUHL:  Senator

        13       Present.

        14                      SENATOR PRESENT:  Mr. President,

        15       is there a message of necessity at the desk?

        16                      ACTING PRESIDENT KUHL:  There is.

        17                      SENATOR PRESENT:  I move that we

        18       accept the message.

        19                      ACTING PRESIDENT KUHL:  The

        20       motion is to accept the message of necessity at

        21       the desk on Calendar Number 1791.  All those in

        22       favor, signify by saying aye.

        23                      (Response of "Aye.")











                                                             
10064

         1                      Opposed, nay.

         2                      (There was no response.)

         3                      Message is accepted.

         4                      Secretary will read the last

         5       section.

         6                      THE SECRETARY:  Section 2.  This

         7       act shall take effect immediately.

         8                      SENATOR PATERSON:  Lay it aside.

         9                      ACTING PRESIDENT KUHL:  Lay the

        10       bill aside.

        11                      Secretary will continue to read.

        12                      THE SECRETARY:  Calendar Number

        13       1792, by the Assembly Committee on Rules,

        14       Assembly Print 11336A, an act to amend the

        15       Transportation Law.

        16                      ACTING PRESIDENT KUHL:  Senator

        17       Present.

        18                      SENATOR PRESENT:  Mr. President,

        19       is there a message of necessity at the desk?

        20                      ACTING PRESIDENT KUHL:  There is.

        21                      SENATOR PRESENT:  I move that we

        22       accept the message.

        23                      ACTING PRESIDENT KUHL:  The











                                                             
10065

         1       motion is to accept the message of necessity on

         2       Calendar Number 1792 which is at the desk.  All

         3       those in favor, signify by saying aye.

         4                      (Response of "Aye.")

         5                      Opposed, nay.

         6                      (There was no response.)

         7                      Message is accepted.

         8                      The Secretary will read the last

         9       section.

        10                      THE SECRETARY:  Section 17.  This

        11       act shall take effect immediately.

        12                      ACTING PRESIDENT KUHL:  Call the

        13       roll.

        14                      (The Secretary called the roll.)

        15                      THE SECRETARY:  Ayes 58.

        16                      ACTING PRESIDENT KUHL:  The bill

        17       is passed.

        18                      Secretary will continue to read.

        19                      THE SECRETARY:  Calendar Number

        20       1793, by the Assembly Committee on Rules,

        21       Assembly Print 11340, an act to amend the Public

        22       Authorities Law.

        23                      ACTING PRESIDENT KUHL:  Senator











                                                             
10066

         1       Present.

         2                      SENATOR PRESENT:  Mr. President,

         3       is there a message of necessity at the desk?

         4                      ACTING PRESIDENT KUHL:  There is.

         5                      SENATOR PRESENT:  I move that we

         6       accept the message.

         7                      ACTING PRESIDENT KUHL:  The

         8       motion is to accept the message of necessity on

         9       Calendar Number 1793 which is at the desk.  All

        10       those in favor, signify by saying aye.

        11                      (Response of "Aye.")

        12                      Opposed, nay.

        13                      (There was no response.)

        14                      The message is accepted.

        15                      The Secretary will read the last

        16       section.

        17                      THE SECRETARY:  Section 2.  This

        18       act shall take effect immediately.

        19                      ACTING PRESIDENT KUHL:  Call the

        20       roll.

        21                      (The Secretary called the roll.)

        22                      THE SECRETARY:  Ayes 58.

        23                      ACTING PRESIDENT KUHL:  The bill











                                                             
10067

         1       is passed.

         2                      Senator Present.

         3                      SENATOR PRESENT:  Mr. President,

         4       I believe you have a nomination at the desk.  I

         5       move that we move the nomination of Michael

         6       Axelrod.

         7                      ACTING PRESIDENT KUHL:  We do

         8       have a report of the Finance Committee at the

         9       desk.

        10                      We'll ask the Secretary to read.

        11                      THE SECRETARY:  Senator Stafford,

        12       from the Committee on Finance, reports the

        13       following nomination:

        14                      Member of the Waterfront

        15       Commission of New York Harbor, Michael Axelrod,

        16       of Roslyn.

        17                      ACTING PRESIDENT KUHL:  Chair

        18       recognizes Senator Tully on the nomination.

        19                      SENATOR TULLY:  Thank you, Mr.

        20       President.

        21                      I am pleased to second the

        22       nomination of Michael Axelrod as a member of the

        23       Waterfront Commission of New York Harbor.  He is











                                                             
10068

         1       a constituent of mine with fine academic

         2       credentials.  He's the former editor of the Law

         3       Review in his law school.  He's an active trial

         4       attorney who has been involved both as a

         5       prosecutor and defense attorney, serving as a

         6       member of the Legal Aid Society as well as a

         7       former assistant district attorney.

         8                      He will be a fine addition to the

         9       Waterfront Commission.  I'm pleased to second

        10       his nomination.

        11                      ACTING PRESIDENT KUHL:  The

        12       question is on the nomination.  All those in

        13       favor, signify by saying aye.

        14                      (Response of "Aye.")

        15                      Opposed, nay.

        16                      (There was no response.)

        17                      The nominee is confirmed.

        18                      SENATOR SKELOS:  Mr. President.

        19                      ACTING PRESIDENT KUHL:  Senator

        20       Skelos.

        21                      SENATOR SKELOS:  Would you call

        22       up Calendar Number 1791.

        23                      ACTING PRESIDENT KUHL:  Secretary











                                                             
10069

         1       will read Calendar Number 1791, page 1,

         2       Supplemental Calendar 2.

         3                      THE SECRETARY:  Calendar Number

         4       1791, by the Assembly Committee on Rules,

         5       Assembly Print 11335.

         6                      ACTING PRESIDENT KUHL:  The

         7       message was previously accepted.

         8                      Senator Connor.

         9                      SENATOR CONNOR:  I'm sorry.

        10                      ACTING PRESIDENT KUHL:  Senator

        11       Mendez, why do you rise?

        12                      SENATOR MENDEZ:  Mr. President,

        13       there's going to be a Democratic Minority

        14       conference in Room 3-1-4, 314, now.

        15                      ACTING PRESIDENT KUHL:  Immediate

        16       meeting of the Minority Conference in the

        17       Minority Conference Room 314.  That means now.

        18                      SENATOR JOHNSON:  Mr. President.

        19                      ACTING PRESIDENT KUHL:  Senator

        20       Johnson, why do you rise?

        21                      SENATOR JOHNSON:  Mr. President,

        22       I would like unanimous consent to be recorded in

        23       the negative on Calendar Number 22.











                                                             
10070

         1                      ACTING PRESIDENT KUHL:  Senator

         2       Johnson, we're on a bill on debate right this

         3       moment.  If you'll hold on while we decide what

         4       we're going to do with that bill.

         5                      SENATOR JOHNSON:  Okay.  I'll

         6       wait, Mr. President.

         7                      ACTING PRESIDENT KUHL:  Senator

         8       Bruno, did you wish us to lay Calendar Number

         9       1791 aside for the time being?

        10                      Calendar Number 1791 will be laid

        11       aside temporarily.

        12                      Senator Johnson.

        13                      SENATOR JOHNSON:  Mr. President,

        14       I would like unanimous consent to be recorded in

        15       the negative on Calendar Number 22 which passed

        16       earlier today.

        17                      ACTING PRESIDENT KUHL:  Without

        18       objection, hearing no objection, Senator Johnson

        19       will be recorded in the negative on Calendar

        20       Number 22.

        21                      Senator Bruno.

        22                      SENATOR BRUNO:  Mr. President,

        23       can we recognize Senator Montgomery?











                                                             
10071

         1                      ACTING PRESIDENT KUHL:  Senator

         2       Montgomery.

         3                      SENATOR MONTGOMERY:  Yes, Mr.

         4       President.  I would like unanimous consent to be

         5       recorded in the negative on Calendar 1607.

         6                      ACTING PRESIDENT KUHL:  Without

         7       objection, hearing no objection, Senator

         8       Montgomery will be recorded in the negative on

         9       Calendar Number 1607.

        10                      Return to the order of motions

        11       and resolutions.  There is a privileged

        12       resolution at the desk, Senator Bruno, we could

        13       take up at this time if you so desire.

        14                      SENATOR BRUNO:  Mr. President,

        15       can we read the title of the resolution by

        16       Senator Lachman and move its adoption.

        17                      ACTING PRESIDENT KUHL:  I ask the

        18       Secretary to read the title of the privileged

        19       resolution by Senator Lachman.

        20                      THE SECRETARY:  By Senator

        21       Lachman, Legislative Resolution commemorating

        22       the 35th wedding anniversary of Dr. Martin and

        23       Alma Genzler.











                                                             
10072

         1                      ACTING PRESIDENT KUHL:  Question

         2       is on the resolution.  All those in favor of the

         3       resolution, signify by saying aye.

         4                      (Response of "Aye.")

         5                      Opposed nay.

         6                      (There was no response.)

         7                      The resolution is adopted.

         8                      Senator Bruno, we do have a

         9       report of the Rules Committee if you would like

        10       to take that up at this time.

        11                      SENATOR BRUNO:  Can we do that at

        12       this time, Mr. President.

        13                      Thank you.

        14                      ACTING PRESIDENT KUHL:  Return to

        15       the order of reports of standing committees.

        16                      I'll ask the Secretary to read

        17       the report of the Rules Committee.

        18                      THE SECRETARY:  Senator Bruno,

        19       from the Committee on Rules, reports the

        20       following bills:

        21                      Senate Print 2445B, by Senator

        22       Volker, an act to amend the Civil Practice Law

        23       and Rules;











                                                             
10073

         1                      7738, by Senator Hoblock, an act

         2       to amend the Civil Service Law;

         3                      2439B, by Senator Stavisky, an

         4       act to amend the Social Services Law;

         5                      6335A, by Senator Seward,

         6       Volunteer Firemen's Benefit Law;

         7                      7864A, by Senator Trunzo, an act

         8       to amend the Chapter of the Laws of 1996;

         9                      7890A, by the Senate Committee on

        10       Rules, an act to amend the Real Property Tax

        11       Law;

        12                      7959, by Senator Libous, an act

        13       to amend the Tax Law;

        14                      7960, by Senator Lack, an act to

        15       amend the Civil Practice Law and Rules;

        16                      7961, by Senator Cook, an act to

        17       provide for the intercept of state aid;

        18                      7962, by the Senate Committee on

        19       Rules, an act to amend the Workers' Compensation

        20       Law and the Insurance Law;

        21                      7963, by the Senate Committee on

        22       Rules, an act to amend the Retirement and Social

        23       Security Law;











                                                             
10074

         1                      Assembly Print 11271, by the

         2       Assembly Committee on Rules, an act to allow

         3       members of New York State employee retirement

         4       system; and

         5                      Assembly Print 11308A, by the

         6       Assembly Committee on Rules, an act to amend the

         7       Civil Practice Law and Rules.

         8                      All bills ordered directly for

         9       third reading.

        10                      ACTING PRESIDENT KUHL:  The

        11       motion is to accept the report of the Rules

        12       Committee.  All those in favor, signify by

        13       saying aye.

        14                      (Response of "Aye.")

        15                      Opposed, nay.

        16                      (There was no response.)

        17                      The Rules report is accepted.

        18       All bills are ordered directly to third

        19       reading.

        20                      (Whereupon, at 3:15 p.m., the

        21       Senate recessed until 3:35 p.m.)

        22                      ACTING PRESIDENT KUHL:  Senate

        23       will come to order.  Ask the members to find











                                                             
10075

         1       their places.

         2                      SENATOR BRUNO:  Can we at this

         3       time take up Calendar Number -- we were voting

         4       on Calendar 1791.  Can we resume discussion on

         5       1791.

         6                      ACTING PRESIDENT KUHL:  We need

         7       to put the bill before the house, Senator Bruno,

         8       first.

         9                      SENATOR SKELOS:  Thank you.

        10                      ACTING PRESIDENT KUHL:  Secretary

        11       will read the title to Calendar 1791.

        12                      THE SECRETARY:  Calendar Number

        13       1791, by the Assembly Committee on Rules,

        14       Assembly Print Number 11335, an act to amend the

        15       Education Law.

        16                      ACTING PRESIDENT KUHL:  Message

        17       was previously accepted.

        18                      SENATOR CONNOR:  Last section.

        19                      ACTING PRESIDENT KUHL:  The

        20       Secretary will read the last section.

        21                      THE SECRETARY:  Section 2.  This

        22       act shall take effect immediately.

        23                      ACTING PRESIDENT KUHL:  Call the











                                                             
10076

         1       roll.

         2                      (The Secretary called the roll.)

         3                      THE SECRETARY:  Ayes 58.

         4                      ACTING PRESIDENT KUHL:  The bill

         5       is passed.

         6                      Senator Bruno.

         7                      SENATOR BRUNO:  Mr. President,

         8       can we now take up Supplemental Calendar No. 3,

         9       noncontroversial.

        10                      ACTING PRESIDENT KUHL:

        11       Supplemental Calendar No. 3 is on the members'

        12       desks together with the bills reported earlier

        13       from the Rules Committee which are contained

        14       therein.

        15                      Secretary will read the

        16       noncontroversial reading of Supplemental

        17       Calendar No. 3, commencing with Calendar Number

        18       434, by Senator Volker.

        19                      THE SECRETARY:  Senator Volker

        20       moves to discharge from the Committee on Rules

        21       Assembly Bill Number 4000B and substitute it for

        22       the identical Third Reading Calendar 434.

        23                      ACTING PRESIDENT KUHL:











                                                             
10077

         1       Substitution is ordered.

         2                      Secretary will read the title.

         3                      THE SECRETARY:  Calendar Number

         4       434, by Member of the Assembly Canestrari,

         5       Assembly Print 4000B, an act to amend the Civil

         6       Practice Law and Rules.

         7                      ACTING PRESIDENT KUHL:  The

         8       Secretary will read the last section.

         9                      THE SECRETARY:  Section 4.  This

        10       act shall take effect immediately.

        11                      ACTING PRESIDENT KUHL:  Call the

        12       roll.

        13                      (The Secretary called the roll.)

        14                      THE SECRETARY:  Ayes 58.

        15                      ACTING PRESIDENT KUHL:  The bill

        16       is passed.

        17                      THE SECRETARY:  Senator Hoblock

        18       moves to discharge from the Committee on Rules

        19       Assembly Bill Number 11031 and substitute it for

        20       the identical Third Reading Calendar 1544.

        21                      ACTING PRESIDENT KUHL:

        22       Substitution is ordered.

        23                      Secretary will read the title.











                                                             
10078

         1                      THE SECRETARY:  Calendar Number

         2       1544, by the Assembly Committee on Rules,

         3       Assembly Print 11031, an act to amend the Civil

         4       Service Law.

         5                      ACTING PRESIDENT KUHL:  The

         6       Secretary will read the last section.

         7                      THE SECRETARY:  Section 2.  This

         8       act shall take effect immediately.

         9                      ACTING PRESIDENT KUHL:  Call the

        10       roll.

        11                      (The Secretary called the roll.)

        12                      THE SECRETARY:  Ayes 58.

        13                      ACTING PRESIDENT KUHL:  The bill

        14       is passed.

        15                      THE SECRETARY:  Senator Stavisky

        16       moves to discharge from the Committee on Social

        17       Services Assembly Bill Number 4011B and

        18       substitute it for the identical Third Reading

        19       Calendar 1794.

        20                      ACTING PRESIDENT KUHL:

        21       Substitution is ordered.

        22                      SENATOR LIBOUS:  Lay it aside.

        23                      ACTING PRESIDENT KUHL:  Lay the











                                                             
10079

         1       bill aside.

         2                      THE SECRETARY:  Senator Seward

         3       moves to discharge from the Committee on Local

         4       Government Assembly Bill Number 9218A and

         5       substitute it for the identical Third Reading

         6       Calendar 1795.

         7                      ACTING PRESIDENT KUHL:

         8       Substitution is ordered.

         9                      Secretary will read the title.

        10                      THE SECRETARY:  Calendar Number

        11       1795, by Member of the Assembly Magee, Assembly

        12       Print 9218A, an act to amend the Volunteer

        13       Firefighters' Benefit Law.

        14                      ACTING PRESIDENT KUHL:  The

        15       Secretary will read the last section.

        16                      THE SECRETARY:  Section 4.  This

        17       act shall take effect immediately.

        18                      ACTING PRESIDENT KUHL:  Call the

        19       roll.

        20                      (The Secretary called the roll.)

        21                      THE SECRETARY:  Ayes 58.

        22                      ACTING PRESIDENT KUHL:  The bill

        23       is passed.











                                                             
10080

         1                      THE SECRETARY:  Senator Trunzo

         2       moves to discharge from the Committee on Rules

         3       Assembly Bill Number 11159 and substitute it for

         4       the identical Third Reading Calendar 1796.

         5                      ACTING PRESIDENT KUHL:

         6       Substitution is ordered.

         7                      Secretary will read the title.

         8                      THE SECRETARY:  Calendar Number

         9       1796, by the Assembly Committee on Rules,

        10       Assembly Print 11159, an act to amend a Chapter

        11       of the Laws of 1996.

        12                      ACTING PRESIDENT KUHL:  The

        13       Secretary will read the last section.

        14                      THE SECRETARY:  Section 5.  This

        15       act shall take effect on the same day as a

        16       chapter of the laws of 1996.

        17                      ACTING PRESIDENT KUHL:  Call the

        18       roll.

        19                      (The Secretary called the roll.)

        20                      THE SECRETARY:  Ayes 58.

        21                      ACTING PRESIDENT KUHL:  The bill

        22       is passed.

        23                      THE SECRETARY:  Senator Bruno











                                                             
10081

         1       moves to discharge from the Committee on Rules

         2       Assembly Bill Number 11254A and substitute it

         3       for the identical Third Reading Calendar 1797.

         4                      ACTING PRESIDENT KUHL:

         5       Substitution is ordered.  Secretary will read

         6       the title.

         7                      THE SECRETARY:  Calendar Number

         8       1797, by the Assembly Committee on Rules,

         9       Assembly Bill Number 11254A, an act to amend

        10       Real Property Tax Law.

        11                      SENATOR LEICHTER:  Lay it aside.

        12                      ACTING PRESIDENT KUHL:  Lay the

        13       bill aside.

        14                      THE SECRETARY:  Senator Libous

        15       moves to discharge from the Committee on Rules

        16       Assembly Bill Number 11225 and substitute it for

        17       the identical Third Reading Calendar 1798.

        18                      ACTING PRESIDENT KUHL:

        19       Substitution is ordered.

        20                      Secretary will read the title.

        21                      SENATOR MONTGOMERY:  Lay it

        22       aside.

        23                      ACTING PRESIDENT KUHL:  Secretary











                                                             
10082

         1       will read the title.

         2                      THE SECRETARY:  Calendar Number

         3       1798, by the Assembly Committee on Rules,

         4       Assembly Print 11225, an act to amend the Tax

         5       Law.

         6                      ACTING PRESIDENT KUHL:  Lay the

         7       bill aside.

         8                      THE SECRETARY:  Calendar Number

         9       1799, by Senator Lack, Senate Print 7960, an act

        10       to amend the Civil Practice Law and Rules.

        11                      SENATOR BRUNO:  Is there a

        12       message at the desk, Mr. President?

        13                      ACTING PRESIDENT KUHL:  There is.

        14                      SENATOR BRUNO:  Move we accept

        15       the message.

        16                      ACTING PRESIDENT KUHL:  The

        17       motion is to accept the message of necessity at

        18       the desk on Calendar Number 1799.  All those in

        19       favor, signify by saying aye.

        20                      (Response of "Aye.")

        21                      Opposed nay.

        22                      (There was no response.)

        23                      Message is accepted.











                                                             
10083

         1                      Secretary will read the last

         2       section.

         3                      THE SECRETARY:  Section 2.  This

         4       act shall take effect on the 30th day.

         5                      ACTING PRESIDENT KUHL:  Call the

         6       roll.

         7                      (The Secretary called the roll.)

         8                      Announce the results when

         9       tabulated.

        10                      THE SECRETARY:  Ayes 57, nays 1,

        11       Senator DiCarlo recorded in the negative.

        12                      ACTING PRESIDENT KUHL:  Bill is

        13       passed.

        14                      THE SECRETARY:  Calendar Number

        15       1800, by Senator Cook, Senate Print 7961, an act

        16       to provide for the intercept of state aid.

        17                      SENATOR WALDON:  Lay it aside.

        18                      SENATOR LEICHTER:  Lay it aside.

        19                      ACTING PRESIDENT KUHL:  Senator

        20       Bruno.

        21                      SENATOR SKELOS:  Is there a

        22       message at the desk?

        23                      ACTING PRESIDENT KUHL:  There is.











                                                             
10084

         1                      SENATOR BRUNO:  Move we accept

         2       the message.

         3                      ACTING PRESIDENT KUHL:  The

         4       motion is to accept the message of necessity on

         5       Calendar Number 1800.  All those in favor,

         6       signify by saying aye.

         7                      (Response of "Aye.")

         8                      Opposed, nay.

         9                      (There was no response.)

        10                      Message is accepted.

        11                      Lay the bill aside.

        12                      THE SECRETARY:  Calendar Number

        13       1801, by the Senate Committee on Rules, Senate

        14       Print 7962, an act to amend the Workers'

        15       Compensation Law and the Insurance Law.

        16                      ACTING PRESIDENT KUHL:  Senator

        17       Bruno.

        18                      SENATOR BRUNO:  Is there a

        19       message at the desk?

        20                      ACTING PRESIDENT KUHL:  There is.

        21                      SENATOR BRUNO:  Move we accept

        22       the message.

        23                      ACTING PRESIDENT KUHL:  The











                                                             
10085

         1       motion is to accept the message of necessity on

         2       Calendar Number 1901.  All those in favor,

         3       signify by saying aye.

         4                      (Response of "Aye.")

         5                      Opposed, nay.

         6                      (There was no response.)

         7                      Message is accepted.

         8                      Secretary will read the last

         9       section.

        10                      THE SECRETARY:  Section 3.  This

        11       act shall take effect January 1.

        12                      ACTING PRESIDENT KUHL:  Call the

        13       roll.

        14                      (The Secretary called the roll.)

        15                      THE SECRETARY:  Ayes 58.

        16                      ACTING PRESIDENT KUHL:  The bill

        17       is passed.

        18                      THE SECRETARY:  Calendar Number

        19       1802, by the Senate Committee on Rules, Senate

        20       Print 7963, an act to amend the Retirement and

        21       Social Security Law.

        22                      ACTING PRESIDENT KUHL:  Senator

        23       Bruno.











                                                             
10086

         1                      SENATOR BRUNO:  Is there a

         2       message at the desk, Mr. President?

         3                      ACTING PRESIDENT KUHL:  There is.

         4                      SENATOR BRUNO:  Move we accept

         5       the message.

         6                      ACTING PRESIDENT KUHL:  The

         7       motion is to accept the message of necessity on

         8       Calendar Number 1802.  All those in favor,

         9       signify by saying aye.

        10                      (Response of "Aye.")

        11                      Opposed, nay.

        12                      (There was no response.)

        13                      The message is accepted.

        14                      The Secretary will read the last

        15       section.

        16                      THE SECRETARY:  Section 7.  This

        17       act shall take effect immediately.

        18                      ACTING PRESIDENT KUHL:  Call the

        19       roll.

        20                      (The Secretary called the roll.)

        21                      THE SECRETARY:  Ayes 58.

        22                      ACTING PRESIDENT KUHL:  The bill

        23       is passed.











                                                             
10087

         1                      THE SECRETARY:  Calendar Number

         2       1803, by the Assembly Committee on Rules,

         3       Assembly Print 11271, an act to allow members of

         4       the New York State Employees Retirement System.

         5                      ACTING PRESIDENT KUHL:  The

         6       Secretary will read the last section.

         7                      THE SECRETARY:  Section 2.  This

         8       act shall take effect immediately.

         9                      ACTING PRESIDENT KUHL:  Call the

        10       roll.

        11                      (The Secretary called the roll.)

        12                      SENATOR LEICHTER:  Mr.

        13       President.  I'm sorry, Mr. President.  Would you

        14       hold -

        15                      ACTING PRESIDENT KUHL:  Senator

        16       Leichter, we're on a roll call.  We're in the

        17       middle of a roll call.

        18                      SENATOR LEICHTER:  First of all,

        19       I want that bill laid aside, 1803.

        20                      ACTING PRESIDENT KUHL:  1803.

        21                      SENATOR LEICHTER:  I ask that it

        22       be laid aside.

        23                      ACTING PRESIDENT KUHL:  Okay.











                                                             
10088

         1                      SENATOR LEICHTER:  And then, Mr.

         2       President, Calendar 1802, would you please

         3       reconsider the vote by which that bill passed.

         4                      ACTING PRESIDENT KUHL:  Do you

         5       have some desire with regard to Calendar Number

         6       1802, Senator Leichter?

         7                      SENATOR LEICHTER:  Would you lay

         8       that bill aside after we reconsider the vote.

         9       Have we reconsidered the vote?

        10                      ACTING PRESIDENT KUHL:  The

        11       motion is to reconsider the vote by which

        12       Calendar Number 1802 passed the house.

        13                      The Secretary will call the roll

        14       on reconsideration.

        15                      THE SECRETARY:  Calendar Number

        16       1802, by the Senate Committee on Rules, Senate

        17       Print 7963, an act to amend the Retirement and

        18       Social Security law.

        19                      SENATOR LEICHTER:  Lay the bill

        20       aside, please.

        21                      ACTING PRESIDENT KUHL:  The

        22       Secretary will call the roll on reconsideration.

        23                      (The Secretary called the roll on











                                                             
10089

         1       reconsideration.)

         2                      THE SECRETARY:  Ayes 58.

         3                      ACTING PRESIDENT KUHL:  Lay the

         4       bill aside.

         5                      SENATOR LEICHTER:  1803 has been

         6       laid aside, Mr. President?

         7                      ACTING PRESIDENT KUHL:  That's

         8       correct.

         9                      SENATOR LEICHTER:  Thank you.

        10                      ACTING PRESIDENT KUHL:  Secretary

        11       will continue to call the noncontroversial

        12       calendar.

        13                      THE SECRETARY:  Calendar Number

        14       1804, by the Assembly Committee on Rules,

        15       Assembly Print 11308A, an act to amend the Civil

        16       Practice Law and Rules.

        17                      ACTING PRESIDENT KUHL:  Senator

        18       Bruno.

        19                      SENATOR BRUNO:  Is there a

        20       message at the desk, Mr. President?

        21                      ACTING PRESIDENT KUHL:  There is.

        22                      SENATOR BRUNO:  Move we accept

        23       the message.











                                                             
10090

         1                      ACTING PRESIDENT KUHL:  The

         2       motion is to accept the message of necessity at

         3       the desk on Calendar Number 1804.  All those in

         4       favor, signify by saying aye.

         5                      (Response of "Aye.")

         6                      Opposed, nay.

         7                      (There was no response.)

         8                      The message is accepted.

         9                      The Secretary will read the last

        10       section.

        11                      THE SECRETARY:  Section 2.  This

        12       act shall take effect in 30 days.

        13                      ACTING PRESIDENT KUHL:  Call the

        14       roll.

        15                      (The Secretary called the roll.)

        16                      THE SECRETARY:  Ayes 57, nays 1,

        17       Senator DiCarlo recorded in the negative.

        18                      ACTING PRESIDENT KUHL:  The bill

        19       is passed.

        20                      (The Senate stood at ease from

        21       3:45 p.m. to 4:00 p.m.)

        22                      ACTING PRESIDENT KUHL:  A little

        23       order in the house, please.  Coming close to the











                                                             
10091

         1       end here.  Let's make sure we can all hear it.

         2                      Senator Bruno.

         3                      SENATOR BRUNO:  Mr. President,

         4       can we at this time ask that we have the last

         5       Rules Committee in Room 332.

         6                      ACTING PRESIDENT KUHL:  There

         7       will be an immediate meeting of the Rules

         8       Committee, immediate meeting of the Rules

         9       Committee, the last one for today, in Room 332,

        10       the Majority Conference Room.  Immediate meeting

        11       of the Rules Committee, Majority Conference

        12       Room, Room 332.

        13                      Order in the house, please.

        14                      Senator Bruno.

        15                      SENATOR BRUNO:  Mr. President.

        16       Can we now go to the controversial calendar and

        17       take up Calendar 1798.

        18                      ACTING PRESIDENT KUHL:  Secretary

        19       will read the title to Calendar Number 1798,

        20       controversial reading of the bill.

        21                      THE SECRETARY:  Calendar Number

        22       1798, by the Assembly Committee on Rules,

        23       Assembly Print 11225, an act to amend the Tax











                                                             
10092

         1       Law.

         2                      ACTING PRESIDENT KUHL:  Senator

         3       Paterson.

         4                      SENATOR PATERSON:  Mr. President,

         5       might we hold that bill for a couple of minutes

         6       for -

         7                      (It was indicated Senator

         8       Oppenheimer was present.)

         9                      Yes, but Senator Leichter

        10       specifically asked that it be held, and he is

        11       not here.

        12                      ACTING PRESIDENT KUHL:  Senator

        13       Paterson, do you want Senator Oppenheimer to

        14       share the cheese with you while she's talking?

        15                      SENATOR PATERSON:  Well, if we

        16       can have an explanation, I'll think about that.

        17                      ACTING PRESIDENT KUHL:  Senator

        18       Libous, an explanation of Calendar Number 1798

        19       has been asked for by Senator Paterson.

        20                      SENATOR LIBOUS:  Thank you, Mr.

        21       President.

        22                      Basically what this bill will do

        23       is it will provide a $75 tax credit per ton for











                                                             
10093

         1       the beneficial use of newly generated waste

         2       tires, and also will generate $100 tax credit

         3       per ton for the beneficial use of stockpiled

         4       waste tires.  There is a facility that now

         5       presently exists in my district that would

         6       probably be closed by the end of the year and

         7       that would have a negative effect on about 40

         8       people who have jobs there, and this bill is

         9       definitely needed.  It passed the Assembly

        10       earlier this morning to keep that facility

        11       running.

        12                      ACTING PRESIDENT KUHL:  Senator

        13       Oppenheimer.

        14                      SENATOR OPPENHEIMER:  If the

        15       sponsor would yield for a few questions?

        16                      ACTING PRESIDENT KUHL:  Senator

        17       Libous, do you yield?

        18                      SENATOR LIBOUS:  I would be happy

        19       to, Mr. President.

        20                      ACTING PRESIDENT KUHL:  Senator

        21       is happy to yield.

        22                      SENATOR OPPENHEIMER:  Actually,

        23       you and I were talking earlier about the











                                                             
10094

         1       environmental impact, but I have a question

         2       concerning -- isn't this a fairly large utility

         3       company that runs this plant?

         4                      SENATOR LIBOUS:  That's correct,

         5       Mr. President.  The plant is run by NYSEG, New

         6       York State Electric and Gas.

         7                      SENATOR OPPENHEIMER:  If you will

         8       continue to yield.  What is the problem here?

         9       They have been doing this you say for years?

        10                      SENATOR LIBOUS:  One of the

        11       problems is -

        12                      SENATOR OPPENHEIMER:  Why is

        13       there a need to do this?

        14                      SENATOR LIBOUS:  Certainly.

        15       There are two facilities in the state like this

        16       that do a good job at burning tires to generate

        17       this into energy, okay, and it's done

        18       environmentally sound because they have gotten

        19       excellent ratings from OSHA and DEC as far as

        20       the process that's taking place.

        21                      The problem is it is a very

        22       costly process and it's very hard to stay

        23       competitive.  In order to keep this facility











                                                             
10095

         1       open, they need this opportunity especially with

         2       the number of tires that are coming in and the

         3       disposal of these tires in turning it into

         4       energy.

         5                      SENATOR OPPENHEIMER:  So then if

         6       I'm hearing correctly, you are saying that the

         7       plant is losing money and that is why we must -

         8       and that sending an increased number of tires

         9       would make them lose more money?

        10                      SENATOR LIBOUS:  Mr. President,

        11       I'm having a difficult time hearing the

        12       Senator's questions because of the little bit of

        13       background noise.

        14                      ACTING PRESIDENT KUHL:  Let's

        15       keep the noise down.  Let's keep the noise down.

        16                      SENATOR LIBOUS:  Senator, would

        17       you please ask that question again?

        18                      SENATOR OPPENHEIMER:  Okay.

        19       Thanks, Senator Libous.  I'm trying to

        20       understand.  You are saying sending increased

        21       numbers of tires would make them lose more

        22       money.

        23                      SENATOR LIBOUS:  No, no.  I'm not











                                                             
10096

         1       saying that.

         2                      SENATOR OPPENHEIMER:  I'm not

         3       understanding the economics here.

         4                      SENATOR LIBOUS:  I'm saying it's

         5       very expensive to take these tires -- which

         6       right now are being stockpiled and posing a

         7       problem to the environment -- and turning them

         8       into energy, so there is a tremendous cost

         9       that's involved in this.

        10                      It's environmentally sound.  It's

        11       doing good things for the environment, but it's

        12       just too costly to keep this operation going.

        13       So there's a tax credit that's needed to keep

        14       this going so we don't have tires being burned

        15       in fields and stockpiled in streams and thrown

        16       on the roadside, and this is why we're doing

        17       this bill.

        18                      SENATOR OPPENHEIMER:  Then the

        19       next question would be -

        20                      ACTING PRESIDENT KUHL:  Do you

        21       continue to yield, Senator Libous?

        22                      SENATOR LIBOUS:  Absolutely.

        23                      SENATOR OPPENHEIMER:  If you will











                                                             
10097

         1       yield.

         2                      ACTING PRESIDENT KUHL:  Senator

         3       continues to yield.

         4                      SENATOR OPPENHEIMER:  The next

         5       question would be, aren't tax credits usually

         6       used for something new, not for something that

         7       is up and running?  This is not a new facility.

         8       You mentioned it's been open for several years.

         9       This is not a new usage for the tax credits.

        10                      SENATOR LIBOUS:  That's correct.

        11       We want to keep the facility open because the

        12       type of service that is being provided there is

        13       environmentally sound, and it's good for the

        14       environment.

        15                      SENATOR OPPENHEIMER:  That is

        16       questionable.

        17                      I know that this bill went

        18       through Ways and Means in the other house.  Why

        19       did it not go through Finance in this house,

        20       because it does have financial implications; and

        21       the second part of the question is, how much is

        22       it going to cost the state?

        23                      SENATOR LIBOUS:  There is an











                                                             
10098

         1       estimate of approximately two million dollars.

         2                      SENATOR OPPENHEIMER:  Well, I

         3       think I would like to talk briefly, if I may, on

         4       the subject.

         5                      ACTING PRESIDENT KUHL:  Senator

         6       Oppenheimer, on the bill.

         7                      SENATOR OPPENHEIMER:  Actually

         8       not on the bill.  I would like Senator Libous to

         9       yield now to a few environmental questions, if

        10       he would.

        11                      SENATOR LIBOUS:  I'm sorry.

        12                      ACTING PRESIDENT KUHL:  Senator

        13       is asking you to yield to a question, Senator

        14       Libous.  Do you yield?

        15                      SENATOR LIBOUS:  Absolutely.  I

        16       have nowhere to go, Mr. President.

        17                      ACTING PRESIDENT KUHL:  Senator

        18       Libous will yield.

        19                      SENATOR OPPENHEIMER:  You have

        20       nowhere else to go; right?

        21                      SENATOR LIBOUS:  Nowhere else to

        22       go.

        23                      SENATOR OPPENHEIMER:  The











                                                             
10099

         1       environmental questions that we were discussing

         2       earlier are still with me.  I just got off on

         3       another track with the economic issue, because I

         4       was wondering why this was happening.

         5                      Do you know how many facilities

         6       currently are applying for this tax credit?  Is

         7       it singularly this one plant, or is there more?

         8                      SENATOR LIBOUS:  Mr. President,

         9       there are presently two facilities in the state,

        10       one here and one in the metropolis of Corning, I

        11       believe.

        12                      SENATOR OPPENHEIMER:  Do you have

        13       any idea what air pollutants are released into

        14       the air with the burning of these tires?

        15                      SENATOR LIBOUS:  Mr. President,

        16       this particular piece of legislation deals with

        17       the tax benefit for this facility as it pertains

        18       to the usage per ton.  Any environmental

        19       questions -- the facility has been open for a

        20       number of years, as I said.  I am told and I

        21       have no reason not to believe those agencies

        22       that are telling me that they are running a good

        23       facility.  Both of these facilities are running











                                                             
10100

         1       environmentally sound.

         2                      So to get into the specifics of

         3       carcinogens and all that kind of thing, this

         4       bill does not deal with that.  If there were

         5       problems, I'm sure the DEC would have closed

         6       this facility down years ago.  But, obviously,

         7       they have not.

         8                      What this is dealing with is

         9       financial impact.

        10                      SENATOR OPPENHEIMER:  The

        11       question is really -- through you, Mr.

        12       President.  Who certifies that this is

        13       environmentally sound?  Because in most places

        14       in this country, it is seen as not sound to burn

        15       tires and, indeed, other usages -- new usages

        16       have been found that are felt to be very

        17       beneficial environmentally.  For example, in

        18       California, in Texas, in Florida, they chip up

        19       the rubber tires and use them as part of road

        20       beds.  That is considered environmentally

        21       sound.  I would like to know who is suggesting

        22       that burning tires -

        23                      SENATOR LIBOUS:  Mr. President,











                                                             
10101

         1       this has been DEC approved.  The DEC, Department

         2       of Environmental Conservation of New York State,

         3       are -- I believe they would have closed the

         4       facility if there has been a problem.

         5                      SENATOR OPPENHEIMER:  Well, I am

         6       concerned.  On the bill.

         7                      ACTING PRESIDENT KUHL:  Senator

         8       Oppenheimer, on the bill.

         9                      SENATOR OPPENHEIMER:  Thank you

        10       for answering my questions, Senator Libous.

        11                      I guess the bottom line is that,

        12       number one, I feel that the tax credits should

        13       be used to find new usages that are

        14       environmentally sound for new businesses, and

        15       there certainly is an answer because we know

        16       that tires have many usages and they can be

        17       recycled and they can be reused, and that is

        18       considered very environmentally sound.

        19                      And so to continue a usage that

        20       is questionable at best I think is not sound and

        21       the environmental community thinks is not sound,

        22       and so I will not be supporting this, and I urge

        23       those who feel as I do that this is not











                                                             
10102

         1       appropriate usage of our state money.

         2                      ACTING PRESIDENT KUHL:  Any other

         3       Senator wishing to speak on the bill?

         4                      Senator Cook.

         5                      SENATOR COOK:  This facility that

         6       is being addressed in this bill, Senator, we

         7       had, as do many areas, immense problems with

         8       waste tires all over the place.  Nobody knew

         9       what to do with them.  County landfill was

        10       getting filled up with them.  They were along

        11       the roadsides.  This plant has cleaned up that

        12       problem.

        13                      We don't have all the stuff going

        14       into the landfill.  The countryside has been

        15       cleaned up.  It is a textbook operation, an

        16       excellent, excellent operation but it loses

        17       money.

        18                      Now, we have the alternative.  We

        19       can close it down, put those tires back in the

        20       landfill, and pay for it there or we can have a

        21       credit which enables this facility to keep

        22       operating, and I think considering the record

        23       that we have for an environmentally clean











                                                             
10103

         1       operation which has been monitored constantly by

         2       the Department of Environmental Conservation,

         3       this is an excellent program, and I think it is

         4       a good investment.

         5                      ACTING PRESIDENT KUHL:  The

         6       Secretary will read the last section.

         7                      THE SECRETARY:  Section 4.  This

         8       act shall take effect immediately.

         9                      ACTING PRESIDENT KUHL:  Call the

        10       roll.

        11                      (The Secretary called the roll.)

        12                      Record the negatives.  Announce

        13       the results.

        14                      Chair recognizes Senator

        15       Oppenheimer to explain her vote.

        16                      SENATOR OPPENHEIMER:  Thank you.

        17       I understand what you are saying, Senator Cook,

        18       and what you are saying, Senator Libous.  I, of

        19       course, do not want the tires in the landfill.

        20       Who does?  What I am saying is there is a vast

        21       industry that is growing in the recycling reuse

        22       field.  This is a multi-billion dollar industry

        23       that we should be drawing to our state as much











                                                             
10104

         1       as possible and, therefore, what should be

         2       created is a plant that will turn these tires

         3       into chips to be used for roadbeds and many

         4       other uses, and it should not be buried and it

         5       should not be burned.

         6                      And so I will be voting no.

         7                      ACTING PRESIDENT KUHL:  Senator

         8       Oppenheimer will be recorded in the negative.

         9                      Results.

        10                      THE SECRETARY:  Those recorded in

        11       the negative on Calendar Number 1798 are

        12       Senators Connor, Gold, Goodman, Hoblock,

        13       Hoffmann, LaValle, Leibell, Leichter, Levy,

        14       Markowitz, Nanula, Onorato, Oppenheimer,

        15       Padavan, Paterson, Seabrook, Smith, Stachowski,

        16       Tully, Waldon, also Senator Montgomery.  Ayes

        17       37, nays 21.

        18                      ACTING PRESIDENT KUHL:  The bill

        19       is passed.

        20                      Senator Bruno.

        21                      (There was a pause in the

        22       proceedings.)

        23                      Senator Bruno.











                                                             
10105

         1                      SENATOR BRUNO:  Mr. President.

         2       Can we at this time take up Calendar Number

         3       1800.

         4                      ACTING PRESIDENT KUHL:  Secretary

         5       will read the title to Calendar Number 1800, by

         6       Senator Cook.

         7                      THE SECRETARY:  Calendar Number

         8       1800, by Senator Cook, Senate Print 7961, an act

         9       to provide for the intercept of state aid.

        10                      ACTING PRESIDENT KUHL:  The

        11       message was previously accepted.

        12                      Senator Leichter.

        13                      SENATOR LEICHTER:  Yeah, I'm not

        14       going to spend much time asking questions of

        15       Senator Cook.  I've just got a comment on the

        16       bill, although, Senator, if you want to make any

        17       explanatory comments on it, I will yield to you.

        18                      SENATOR COOK:  Mr. President, let

        19       me just put this in context.

        20                      Under federal law, the city of

        21       New York was ordered to filter its water system,

        22       and the cost was going to be in the magnitude

        23       variously estimated at 4- to $8 billion which











                                                             
10106

         1       was something, of course, the City was quite

         2       concerned about.  They asked for a waiver from

         3       EPA, and as a condition of that waiver there

         4       were various provisions of land use control,

         5       land acquisition, et cetera.

         6                      Resulting from those efforts

         7       there was some litigation.  The Governor has

         8       been attempting to mediate that lawsuit, in

         9       effect, and we are reaching the point now where

        10       a consent agreement appears to be in the

        11       offing.  As a part of that consent agreement in

        12       which the City would make certain payments in

        13       mitigation of some of the damage that they are

        14       doing to the economy of the region, the City has

        15       agreed to this mechanism of intercept which is,

        16       in effect, a guarantee.

        17                      I won't go into the litany of our

        18       experience with the City because you have heard

        19       it on other occasions, but on previous

        20       agreements that they have made with us, they

        21       have not fulfilled their commitments.  One

        22       administration makes commitments and the next

        23       administration simply does not fulfill them.











                                                             
10107

         1                      This is an effort by which it can

         2       be guaranteed to the people in the watershed

         3       that the agreement will be fulfilled.  The City

         4       has, as I said, their agreement with this

         5       mechanism and it will enable, hopefully, all the

         6       parties in this lawsuit to now sign a consent

         7       agreement which will get EPA off the City's back

         8       and enable this whole issue to be brought to a

         9       conclusion.

        10                      SENATOR LEICHTER:  Mr. President.

        11                      ACTING PRESIDENT KUHL:  Senator

        12       Leichter.

        13                      SENATOR LEICHTER:  Mr. President,

        14       from my understanding of the whole issue of

        15       clean water for the city of New York and it's

        16       also for Westchester and, frankly, it's for your

        17       communities, too, I think you gave us somewhat

        18       incomplete and skewed information, Senator

        19       Cook.

        20                      As we know, EPA has stated that

        21       the city of New York needs to filter its water

        22       unless it does a better job of managing the

        23       watershed.  The City came up with certain ideas











                                                             
10108

         1       and proposals for that better management, and

         2       one of the aspects of it was, as you know,

         3       because EPA required that the City go ahead and

         4       acquire more land; secondly, that it does a

         5       better job in seeing that there aren't runoffs

         6       into the water system.

         7                      If the City had to filter its

         8       water and the water of Westchester and your

         9       community, it would be an enormous burden not

        10       just for the taxpayers of the city of New York

        11       but for the whole state.  It's a problem that we

        12       need to solve as all residents of New York.

        13       It's not like a New York City problem and shame

        14       on you, New York City, and ha-ha, because it's

        15       going to affect every single resident of New

        16       York State.

        17                      In that connection, and I thought

        18       to his credit, the Governor stepped in, and I

        19       think the Governor's counsel from all reports,

        20       Michael Finnegan, really did a good job in

        21       bringing people together, and there seemed to be

        22       some agreement in principle which is still being

        23       worked out.











                                                             
10109

         1                      Now, that agreement has not been

         2       worked out, and I can not believe -- although I

         3       question your statement in principle -- that the

         4       city of New York is supporting this bill because

         5       it is a very one-sided bill, and until you have

         6       a final agreement to provide, as this bill does,

         7       that you can intercept City monies and utilize

         8       it and take it to fulfill what you consider

         9       certain obligations or requirements by the city

        10       of New York -- I think until you have the whole

        11       agreement, until the City says, "Yes, you can do

        12       that," -- I don't think it has done that -- I

        13       think this bill is, at most, premature and I

        14       think at this time -- frankly, I think it's

        15       somewhat harmful to the process of reaching an

        16       agreement.

        17                      SENATOR COOK:  Mr. President, if

        18       I may, on the bill.

        19                      ACTING PRESIDENT KUHL:  Senator

        20       Cook.

        21                      SENATOR COOK:  Mr. President, one

        22       of the bleary-eyed people sitting to my right is

        23       my counsel who spent all night writing this bill











                                                             
10110

         1       not because he was enjoying the process but

         2       because he had been requested by Michael

         3       Finnegan, by the representatives of the city of

         4       New York, by the other people who were in the

         5       process of negotiating this agreement that you

         6       are discussing, that we put this mechanism in

         7       place.  As you will note, it only takes effect

         8       at the point when the City signs a consent

         9       agreement.  So it is -- and it really only

        10       applies to the things that the City agrees in

        11       the consent agreement that it is going to do.

        12       So it is something that we're doing in order to

        13       facilitate the signing of this consent

        14       agreement.

        15                      Now, if we -- you know, if we

        16       want this litigation to go on another three and

        17       four years, the litigation can, I guess, go on

        18       three or four more years; but if people want to

        19       bring it to a conclusion, which is what all

        20       these discussions are attempting to do, then

        21       we've got to get the pieces in place so that can

        22       happen.

        23                      I have to tell you, Senator, this











                                                             
10111

         1       is being done in an atmosphere of cooperation.

         2       It is not being done in a punitive manner, but

         3       it is being done in a way so one of the elements

         4       of a very complicated agreement can fall into

         5       place so that we can proceed and get the rest of

         6       it put together.

         7                      I have to tell you, Senator,

         8       without this bill, the probability of that

         9       agreement coming together is very minimal.

        10       Without this piece, it is improbable that all

        11       the parties will agree to the conditions of the

        12       consent agreement which is being drafted.

        13       That's why it's crucial.

        14                      Agreed, if we were going to be

        15       here a month from now, maybe we could do it a

        16       month from now.  We're not going to be here.

        17       That's why this is important.

        18                      SENATOR LEICHTER:  Senator, if

        19       you would be so good as to yield?

        20                      SENATOR COOK:  Certainly.

        21                      SENATOR LEICHTER:  Am I not

        22       correct, this is a one-house bill?  The Assembly

        23       hasn't passed it.  It's gone home.  It's not











                                                             
10112

         1       going to become law in any event.

         2                      SENATOR COOK:  Senator, that's

         3       not -- that's not necessarily true.

         4                      SENATOR LEICHTER:  Well, is it -

         5       Senator, with all due respect, if Senator Cook

         6       will yield, please, through you Mr. -

         7                      The Senate is here.  The Assembly

         8       has gone home.  The Assembly has not passed the

         9       bill.  Is that correct?

        10                      SENATOR COOK:  Mr. President.

        11       That is correct, Senator.  However, I can also

        12       tell you -- I can't obviously tell you that

        13       Speaker Silver was addressed on this, simply

        14       because he was not available last night, but

        15       there have been discussions with the Assembly on

        16       this issue.  It is the hope and expectation that

        17       at some point the Assembly will be in session

        18       and be able to put this together.  I think they

        19       will do so at the urging of the city of New York

        20       because the city of New York wants to have this

        21       done, and I think that it -- as I indicated,

        22       they are anxious to get this consent agreement

        23       put together and this is simply just one piece











                                                             
10113

         1       of that whole process.

         2                      SENATOR LEICHTER:  Senator Cook,

         3       and maybe I'm wrong.  You can respond to this,

         4       if you will.  I have sort of the sense listening

         5       to what you are saying that this is sort of

         6       meant to be partly a club over the city of New

         7       York to get them to come to an agreement and, as

         8       we know, that agreement which was announced with

         9       much fanfare in principle is having some

        10       difficulty working out the details.  That often

        11       happens, and I don't say that critically, but I

        12       want to tell you that before I and, I think,

        13       other residents of the city of New York could

        14       vote for a bill that would authorize the

        15       intercept of money at a time that the City signs

        16       an agreement without our having seen that

        17       agreement, without the comptroller of the city

        18       of New York, who has been very much involved in

        19       all of the watershed issues, saying that this is

        20       the responsible thing to do -- we're talking

        21       about millions and millions of dollars of City's

        22       money here.  And without knowing -- I would like

        23       to see, at the very least, a memorandum by the











                                                             
10114

         1       city of New York, has a representative here, and

         2       I don't hold you responsible for that.  It's not

         3       the only issue where I think we ought to have

         4       seen a memo and we haven't seen it or should

         5       have explained to us that this is something that

         6       the mayor presently endorses.

         7                      So I really think, Senator, that

         8       this is very, very premature and while I'm not

         9       part of the negotiations whatsoever, I really

        10       think, Senator, that this is not going to help

        11       those negotiations.  I think you are trying to

        12       put a club over the city of New York, and I

        13       think that's a mistake.

        14                      SENATOR COOK:  Mr. President, one

        15       final word.  Senator, the law does not take

        16       effect until a local law is passed by the City

        17       Council of the city of New York, and it is being

        18       done -- far from being a club against the City,

        19       it is frankly being done as a -- as one of the

        20       things that will be necessary for all the

        21       parties to agree to this thing.  It is an effort

        22       to help the City and help everybody bring this

        23       thing to a conclusion and, frankly, if we don't











                                                             
10115

         1       do this, we're going to be in litigation for a

         2       long time.

         3                      SENATOR LEICHTER:  Mr. President,

         4       if Senator Cook would yield one more moment,

         5       please.  Just one more question.

         6                      ACTING PRESIDENT KUHL:  Senator

         7       Cook, do you continue to yield?

         8                      SENATOR LEICHTER:  Senator, at

         9       the time that that agreement is finalized, it

        10       will probably still take some time to do that,

        11       and it's a very complex agreement.  I suspect

        12       it's going to need a fair amount of legislation.

        13       It's certainly going to need action within the

        14       city of New York.  As you say, it's going to

        15       need action by the City Council.  There are some

        16       of those who, like me, will insist that we know

        17       what the position of the comptroller of the city

        18       of New York is.  Why not do it at that time?

        19                      Senator, why pass this bill now,

        20       sort of, "Well, in the future if this and this

        21       and this happens, then it goes into effect" and

        22       without even providing for all the eventualities

        23       that we would like to see, even the very fact











                                                             
10116

         1       that you and I as representatives of our

         2       districts and of the state of New York, we would

         3       like to know what that final agreement is.

         4                      Why should I vote now for

         5       something that's going to allow the intercept of

         6       City money when I don't know what that agreement

         7       is?

         8                      SENATOR COOK:  Mr. President, i

         9       can only give you the final answer, Senator,

        10       that there is litigation under way that is

        11       attempting to be resolved by a consent

        12       agreement.  That consent agreement will not be

        13       signed without this piece, and if we ever want

        14       to bring this thing to a conclusion, this bill

        15       has to be passed.

        16                      ACTING PRESIDENT KUHL:  Senator

        17       Padavan.

        18                      SENATOR PADAVAN:  Thank you, Mr.

        19       President.

        20                      Senator Leichter, my initial

        21       reaction to this bill was very similar to

        22       yours.  However, I did take the time to seek out

        23       the mayor's representative here in Albany to











                                                             
10117

         1       request directly from him as to what the mayor's

         2       position was.  I will share that response with

         3       you.

         4                      It was that the mayor would like

         5       this bill to be passed.  He considers it an

         6       integral part of the negotiations that have been

         7       referred to by you and Senator Cook.  He feels

         8       that the safeguard in here of local law enacted

         9       by the City Council enables -- provides for a

        10       level of protection, if you will, against

        11       anything being done in regard to the flow of

        12       these funds in a manner that would be

        13       detrimental to the City.

        14                      Now, obviously, that's not going

        15       to satisfy everything you had to say, but,

        16       nevertheless, I thought you should be aware of

        17       that fact.

        18                      SENATOR LEICHTER:  Mr. President,

        19       just briefly responding to Senator Padavan.

        20                      Senator Padavan, I thank you for

        21       that, and I want to tell you that at least it

        22       soothes the curious doubt that I had about this

        23       bill and sort of replaces it now with a healthy











                                                             
10118

         1       skepticism.

         2                      I would still feel a lot more

         3       comfortable if that bill came before us when we

         4       had a signed agreement; we knew the terms of the

         5       agreement; we had a home rule message; the

         6       comptroller of the city of New York said to us,

         7       "This is City money.  I've got a responsibility

         8       over City money and I'll tell you, yes, this is

         9       a good bill to pass."

        10                      Let's do it at that time.  Let's

        11       not jump ahead and do it and particularly since

        12       at the present time it's definitely a one-house

        13       bill.

        14                      ACTING PRESIDENT KUHL:  The

        15       Secretary will read the last section.

        16                      THE SECRETARY:  Section 3.  This

        17       act shall take effect immediately.

        18                      ACTING PRESIDENT KUHL:  Call the

        19       roll.

        20                      (The Secretary called the roll.)

        21                      Record the negatives and announce

        22       the results.

        23                      SENATOR STACHOWSKI:  Mr.











                                                             
10119

         1       President, explain my vote.

         2                      ACTING PRESIDENT KUHL:  Senator

         3       Stachowski, to explain his vote.

         4                      SENATOR STACHOWSKI:  I'm going to

         5       vote along with Senator Cook on this because I

         6       happen to believe he and Senator Padavan.  I

         7       just find it amazing, though, that there's been

         8       a captive audience for three days and,

         9       apparently, the representative of the city of

        10       New York didn't have any idea where to find the

        11       20-some members that represent the city of New

        12       York that are on the Democrat side.  I think he

        13       could have avoided this debate, and everybody in

        14       this chamber would have felt much better, but

        15       obviously he was too busy sitting some place

        16       else than to walk down the hall and grab one of

        17       these people and explain the bill to them.

        18                      I vote yes.

        19                      ACTING PRESIDENT KUHL:  Senator

        20       Stachowski will be recorded in the affirmative.

        21                      Announce the results.

        22                      THE SECRETARY:  Those recorded in

        23       the negative on Calendar Number 1800 are











                                                             
10120

         1       Senators Connor, Gold, Leichter, Markowitz,

         2       Mendez, Montgomery, Onorato, Paterson, Seabrook,

         3       Smith and Waldon.  Ayes 47.  Nays 11.

         4                      ACTING PRESIDENT KUHL:  The bill

         5       is passed.

         6                      Senator Bruno.

         7                      SENATOR BRUNO:  Mr. President,

         8       can we at this time take up Calendar Number

         9       1802.

        10                      ACTING PRESIDENT KUHL:  Secretary

        11       will read Calendar Number 1802.

        12                      THE SECRETARY:  Calendar Number

        13       1802, by the Senate Committee on Rules, Senate

        14       Print 7963, an act to amend the Retirement and

        15       Social Security Law.

        16                      ACTING PRESIDENT KUHL:  Secretary

        17       will read the last section.

        18                      SENATOR LEICHTER:  Mr.

        19       President.

        20                      THE SECRETARY:  Section 6.  This

        21       act shall take effect immediately.

        22                      SENATOR LEICHTER: Explanation.

        23                      ACTING PRESIDENT KUHL:  Senator











                                                             
10121

         1       Stafford, explanation.

         2                      SENATOR STAFFORD:  Mr. President,

         3       I will yield to Senator Hannon for a brief

         4       explanation of a portion and we also have a

         5       portion of another portion -- excuse me,

         6       Senator, by all means -- excuse me, Senator

         7       Nozzolio, for additional parts of the bill.  I'm

         8       sure that either one could proceed, Senator

         9       Hannon and then Senator Nozzolio.  That will be

        10       wonderful.

        11                      ACTING PRESIDENT KUHL:  May we

        12       have a little order in the house so we can hear

        13       the explanation that's been requested?

        14                      Senator Nozzolio.

        15                      SENATOR NOZZOLIO:  Mr. President,

        16       thank you, Senator Stafford.

        17                      The measure before us renews our

        18       commitment, continues our commitment to the

        19       brave men and women who work in our correctional

        20       facilities across this state.  We are trying to,

        21       through this legislation, remedy an inequity

        22       that exists in the law where members of earlier

        23       tiers have different compensation for if they're











                                                             
10122

         1       injured on the job than those in the tiers that

         2       follow.

         3                      This legislation removes that

         4       inequity.  It serves our commitment to those

         5       brave men and women who work in our correctional

         6       facilities, and I particularly want to thank

         7       those members, especially Senator Stafford, who

         8       worked so hard in bringing this matter to the

         9       floor today.

        10                      SENATOR GOLD:  Mr. President.

        11                      ACTING PRESIDENT KUHL:  Senator

        12       Gold.

        13                      SENATOR GOLD:  Will the gentleman

        14       formerly from Ithaca yield to a question?

        15                      ACTING PRESIDENT KUHL:  Senator

        16       Nozzolio, do you yield?

        17                      SENATOR NOZZOLIO:  Yes, Mr.

        18       President.

        19                      SENATOR GOLD:  Senator, I heard

        20       your explanation of the bill, and I'm just

        21       curious.  The explanation that you gave, was

        22       that -- this is 7963, am I correct? It's a 40 -

        23       wait a minute, 47-page bill, am I correct? Am I











                                                             
10123

         1       on the right bill?

         2                      Your explanation, I think, was

         3       the first two pages, am I correct?

         4                      SENATOR HANNON:  You want to -

         5                      SENATOR GOLD:  Am I correct?

         6                      SENATOR NOZZOLIO:  My portion,

         7       Senator Gold and Mr. President, through you, was

         8       the portion which dealt with those correction

         9       officers.

        10                      SENATOR GOLD:  O.K. I thank you

        11       very much, Senator, so if I understand it

        12       properly in other words, there is a lot more to

        13       this bill than the first two pages which you've

        14       explained and now Senator Hannon is going to

        15       explain the rest of the bill.

        16                      SENATOR HANNON:  Yes.

        17                      SENATOR GOLD:  Then I would

        18       certainly yield to Senator Hannon.

        19                      SENATOR HANNON:  Section 6 of the

        20       bill would provide that in Westchester and in

        21       Nassau there be respective public benefit

        22       corporations set up to provide for the health

        23       care of -- from the public health hospitals of











                                                             
10124

         1       those counties.

         2                      SENATOR GOLD:  Mr. President,

         3       will the Senator yield to a question?

         4                      ACTING PRESIDENT KUHL:  Senator

         5       Hannon, do you yield to a question from Senator

         6       Gold?

         7                      SENATOR HANNON:  Yes.

         8                      ACTING PRESIDENT KUHL:  Senator

         9       yields.

        10                      SENATOR GOLD:  Senator Hannon, I

        11       don't want to be so presumptuous to say that

        12       this is the first time I've seen anything like

        13       this because there may have been something, and

        14       it's not that relevant, but my understanding is

        15       that there was a bill that I think even passed

        16       the Assembly which dealt with the subject matter

        17       as described by Senator Nozzolio, and that took

        18       about two and a half pages.  This document which

        19       I have in my hand is dated July 13th, and my

        20       watch seems to tell me it's July 13th, so

        21       apparently it didn't exist on July 12th,

        22       yesterday, and I don't know whether it was

        23       printed after the Assembly left or as they were











                                                             
10125

         1       leaving, but what does the -- what does page 3

         2       through page 47 have to do with pages 1 and 2,

         3       if anything?

         4                      SENATOR HANNON:  They follow in

         5       numerical order, and they deal with tiering and

         6       they deal with -

         7                      SENATOR GOLD:  I couldn't have

         8       asked for a better answer.  That is a fabulous

         9       answer because that's about all they do have in

        10       common, is that correct?

        11                      SENATOR HANNON:  I didn't finish

        12       my answer, Senator.

        13                      SENATOR GOLD:  Oh, I'm sorry.

        14                      SENATOR HANNON:  And they deal

        15       with the care of some of the people of the state

        16       of New York, as do -

        17                      SENATOR GOLD:  I'm sorry,

        18       Senator.

        19                      SENATOR HANNON:  They deal with

        20       the care of some of the people of the state of

        21       New York, as does the preliminary portion of the

        22       bill.

        23                      SENATOR GOLD:  They deal with











                                                             
10126

         1       care.  They take care of people.

         2                      SENATOR HANNON:  Yes.

         3                      SENATOR GOLD:  Well, will Senator

         4       Hannon yield to a question?

         5                      ACTING PRESIDENT KUHL:  You

         6       continue to yield?

         7                      SENATOR HANNON:  Yes.

         8                      SENATOR GOLD:  Aside from that -

         9                      ACTING PRESIDENT KUHL:  Senator

        10       continues to yield.

        11                      SENATOR GOLD:  Aside from the

        12       fact that every single bill that we ever deal

        13       with takes care of somebody or something in the

        14       state of New York, in terms of germaneness, and

        15       I know, Senator, that once you put a piece of

        16       paper together I'm not going to say, I don't

        17       know whether technically we have an objection,

        18       but you being a scholar, isn't it a fact that

        19       when you get past page two and a half, the rest

        20       of this bill has no germaneness to the first two

        21       and a half pages?

        22                      SENATOR HANNON:  No.

        23                      SENATOR GOLD:  O.K. Mr.











                                                             
10127

         1       President.

         2                      ACTING PRESIDENT KUHL:  Senator

         3       Gold, on the bill.

         4                      SENATOR GOLD:  Yeah, I'm not

         5       going to spar with Senator Hannon.  It's

         6       ridiculous.

         7                      Senator -- I don't want to put

         8       Senator Hannon into a position where he has to

         9       spar.  I respect Senator Hannon for trying to do

        10       something for his community and he certainly

        11       doesn't have to apologize to me or anybody else

        12       for trying to do something for his community,

        13       but I do resent this bill for a number of

        14       reasons.

        15                      The Majority Leader of this house

        16       is a good businessman, and when he came into his

        17       leadership position, he made a strong effort to

        18       make this house take on some of the better types

        19       of operations that a business would do. We start

        20       on time, et cetera, et cetera.  We don't work

        21       quite as late into the night as the other house,

        22       although last night was not exactly early, but

        23       in the spirit of doing things in a businesslike











                                                             
10128

         1       way and in a fair way, we have gone through a

         2       budget process and people have signed off on a

         3       budget, and then after the Assembly has

         4       basically gone from us, to put out a bill which

         5       has these kinds of numbers in them and a bill

         6       which is 47 pages long, and I will vote no for

         7        -- for many reasons, but one reason surely is

         8       that if the shoe is on the other foot, no bright

         9       businessman like Joe Bruno would put his stamp

        10       of approval on 47 legal pages, and you take a

        11       look at these pages.  I'm not -- I'm not

        12       suggesting a page that changes a word so that

        13       somebody says, Well, you know, you've got to

        14       print the whole section because it's got to be

        15       in context, or you have to do the whole section

        16       in order to change the one word.

        17                      This looks to me like 47 pages of

        18       new language, and I guarantee you that once you

        19       get past the word "trust" and if you want to say

        20       we trust our counsel, so let's vote on it

        21       because the counsels told me it did something,

        22       there isn't one member aside from perhaps

        23       Senator Hannon who may have drafted or proposed











                                                             
10129

         1       this kind of legislation which comes before us

         2       only introduced today, I don't think anybody

         3       really knows what this does or the implications

         4       of it.

         5                      This is the kind of thing where

         6       years ago you would have a bill in the bottom

         7       drawer of the Leader's desk and say, My God, we

         8       haven't introduced that yet.  He says, Don't

         9       worry about it, last day of session, we'll get

        10       it printed pretty quick.

        11                      I really don't believe that this

        12       is the way to do this.  I think it's an

        13       imposition on the chamber and, as I say, I

        14       certainly don't resent Senator Hannon for trying

        15       for his constituents.  We all do it, but it is

        16       clear that the first part of this bill

        17       represents something that has been discussed and

        18       something that should be done and, in fact,

        19       Senator Bruno, I believe there's an Assembly

        20       bill that could be handed down that could take

        21       care of Senator Nozzolio's problem and

        22       explanation, and I would support you, Senator

        23       Nozzolio.











                                                             
10130

         1                      Over the years, we've had a lot

         2       of coupling and over the years we have had bills

         3       that say 60 or 80 things, many of the budget

         4       bills, one bill does hundreds of things, and you

         5       are placed in the position where, if you want to

         6       do some of those things, you may have to take

         7       some of the good with the bad, but this is

         8       really, really way out of line.

         9                      This is suggesting that if we

        10       want to do something for the people who are very

        11       deserving and who deal with pages two and three,

        12       we have to give away an awful lot of money to

        13       two communities without any real opportunity for

        14       most of us to be able to deal with the merits of

        15       these proposals.

        16                      I think it's the wrong thing to

        17       do.  I think that from the point of view of

        18       Senator Bruno who has tried for two years -- and

        19       I don't agree with everything he's done and

        20       that's for sure, but who has tried for two years

        21       to get words like "change" and words like

        22       "reform" and words like "businesslike" into the

        23       vocabulary of how this house operates, I think











                                                             
10131

         1       this is a step backwards and I don't think it

         2       ought to be one of the final things that we do

         3       in this legislative chamber.

         4                      I don't think, Senator Bruno, in

         5       justice to what you tried to do you want people

         6       leaving this chamber saying, Uh-uh, when all was

         7       said and done, you see that last 47 pages that

         8       came flying out of Rules at the last minute?

         9                      So I think it's a mistake.  I

        10       think that it's a step backward and we shouldn't

        11       be doing it.

        12                      SENATOR CONNOR:  Mr. President.

        13                      ACTING PRESIDENT KUHL:  Senator

        14       Connor.

        15                      SENATOR CONNOR:  Yes, to close

        16       for the Minority, just let me say, I think this

        17       bill epitomizes what the people of this state

        18       are fed up with.  That's the secrecy, the

        19       spending, the sausage-making that goes into the

        20       budget, and this year we have a new feature, the

        21       hostage-taking and even as we are about to free

        22       the hostages of last night and the past week or

        23       two, the loft tenants, it seems we're compelled











                                                             
10132

         1       to take new hostages, the correction officers.

         2       Moreover, the Assembly passed a straightforward

         3       bill dealing with them and their issue which is

         4       now being sent over here and put into a new bill

         5       by the Majority to create a new set of hostages,

         6       the correction officers.

         7                      Now, they won't get their need

         8       for retirement benefits addressed until the

         9       Westchester and Nassau County Medical Centers

        10       get their millions of dollars, and I'm not

        11       making any judgment about those individual

        12       needs, but gee whiz, funding medical centers

        13       somehow is now germane to providing pension

        14       benefits for correction officers?  And I suppose

        15       next year we'll see even more hostage-taking as

        16       this process hopelessly breaks down.

        17                      I look forward shortly to freeing

        18       some of the hostages, some of whom have been

        19       here with us this past week or two, but I

        20       shudder to think that legislation that

        21       representative government in the state of New

        22       York has turned into the kind of secrecy and

        23       hostage-taking under the guise of legislation











                                                             
10133

         1       that we're seeing here today, that we've seen in

         2       these last couple weeks.

         3                      It's time to end that and have

         4       open representative government that's not so

         5       partisan that we have to take hostages, because

         6       if we keep taking hostages I shudder to think

         7       we're going to start shooting hostages by the

         8       next year's session and doing in the needs of

         9       the people of the state of New York in

        10       retribution for not having some other perceived

        11       need satisfied.

        12                      So, Mr. President, I intend to

        13       vote against this because I don't want to be

        14       party to creating a new set of hostages in this

        15       Capitol.

        16                      ACTING PRESIDENT KUHL:  Senator

        17       Hannon.

        18                      SENATOR HANNON:  Mr. President,

        19       just a couple of comments.

        20                      First of all, for the edification

        21       of Senator Gold who probably has learned some of

        22       the lessons that Senator Bruno has introduced

        23       but not all of them, one of those lessons is











                                                             
10134

         1       that we don't always hear everything that is

         2       said.  I think it's that we don't hear 30 per

         3       cent of what is said.  If he had been listening

         4       the other day to the extensive debate between

         5       myself and Senator Leichter, he would have heard

         6       this bill debated extensively, so it didn't come

         7       out of anywhere.  It is there and it has been

         8       merged in order to achieve the aim of helping

         9       people who need help.

        10                      Second, this bill does not give

        11       money.  This bill saves money, doesn't create

        12       any new appropriation and it saves money in

        13       order to deliver services to some needy people

        14       in both counties.

        15                      I would say that instead of the

        16       standard of double -- or instead of this hostage

        17       being the standard, as Senator Connor would

        18       suggest, we are faced with the introduction,

        19       however, of a double standard.  The Assembly

        20       always thinks that they can help their constit

        21       uents, but we can't help our constituents.  I

        22       would say that's a double standard that ought

        23       not to be continued.  We are all here to do the











                                                             
10135

         1       business of the people of the state of New York

         2       and this bill is an attempt to do that.

         3                      Thank you, Mr. President.

         4                      ACTING PRESIDENT KUHL:  Secretary

         5       will read the last section.

         6                      THE SECRETARY:  Section 7.  This

         7       act shall take effect immediately.

         8                      ACTING PRESIDENT KUHL:  Call the

         9       roll.

        10                      (The Secretary called the roll. )

        11                      ACTING PRESIDENT KUHL:  Record

        12       the negatives; announce the result.

        13                      Senator Paterson, to explain his

        14       vote.

        15                      SENATOR PATERSON:  Mr. President,

        16       I'm voting in the negative, and we are most

        17       anxious to pass legislation that will benefit

        18       those members of the Corrections Department and

        19       particularly those correction officers, partic

        20       ularly those whose unions have fought for them

        21       and are behind them, and we're not opposed to

        22       anyone else benefiting or anyone else's

        23       constituents, whoever they might be, because I











                                                             
10136

         1       thought correction officers were all of our

         2       constituents.

         3                      What I'm saying is we need to

         4       address these in separate bills and not be

         5       taking legislation that was really categorized

         6       to go in one particular area and tainting it in

         7       the actual process.

         8                      The issue may have been discussed

         9       before, but it was just the manner in which it

        10       was constructed that was of concern to us and

        11       that's why I'm voting no.

        12                      SENATOR OPPENHEIMER:  Explain my

        13       vote, Mr. President.

        14                      ACTING PRESIDENT KUHL:  Senator

        15       Paterson will be recorded in the negative.

        16                      Senator Oppenheimer, to explain

        17       her vote.

        18                      SENATOR OPPENHEIMER:  I will be

        19       voting in the affirmative, but I am very

        20       distressed that this is not a real bill.  It's a

        21       one-house bill because the needs of Westchester

        22       County's medical center are so severe and need

        23       tending to so immediately that it is really











                                                             
10137

         1       appalling to me that this all got so convoluted

         2       and got thrown together with other issues.

         3                      I only hope and pray that we will

         4       at some point in the near future have a clean

         5       Westchester Medical County -- Medical Center

         6       bill and that we will pass it expeditiously

         7       because it is desperately needed.

         8                      ACTING PRESIDENT KUHL:  Senator

         9       Oppenheimer in the affirmative.

        10                      Announce the results.

        11                      THE SECRETARY:  Those recorded in

        12       the negative on Calendar Number 1802 are

        13       Senators Connor, Gold, Leichter, Montgomery,

        14       Onorato, Paterson, Seabrook, Smith and

        15       Stachowski.  Ayes 49, nays 9.

        16                      ACTING PRESIDENT KUHL:  The bill

        17       is passed.

        18                      Senator Bruno.

        19                      SENATOR BRUNO:  Mr. President,

        20       can we at this time take up Calendar Number

        21       1803.

        22                      ACTING PRESIDENT KUHL:  Secretary

        23       will read Calendar Number 1803.











                                                             
10138

         1                      SENATOR WALDON:  Explanation.

         2                      THE SECRETARY:  Calendar Number

         3       1803, by the Assembly Committee on Rules,

         4       Assembly Print 11271, an act to allow members of

         5       the New York State Retirement System.

         6                      SENATOR LEICHTER:  Mr.

         7       President.

         8                      ACTING PRESIDENT KUHL:  Senator

         9       Leichter, why do you rise?

        10                      SENATOR LEICHTER:  Because I have

        11       a certain interest in this bill that I'd like to

        12       explore.

        13                      ACTING PRESIDENT KUHL:  Senator

        14       Leichter, I was not being facetious nor was I

        15       meaning to be showing any lack of respect, but

        16       you rose after Senator Waldon had asked for an

        17       explanation.

        18                      SENATOR LEICHTER:  Oh, I'm sorry.

        19                      ACTING PRESIDENT KUHL:  So I was

        20       just trying to maintain some order and decorum

        21       in the chamber which is the responsibility of

        22       the Chair, so if you have no objection I'll ask

        23       for an explanation on behalf of Senator Waldon.











                                                             
10139

         1                      SENATOR LEICHTER:  Not only that,

         2       you do an excellent job.  I didn't hear Senator

         3       Waldon ask for an explanation.  I have some

         4       comments, but let's hear the explanation.

         5                      ACTING PRESIDENT KUHL:  Senator

         6       Bruno, who is going to be providing the

         7       explanation on Calendar 1803?

         8                      SENATOR BRUNO:  Mr. President, I

         9       believe that Senator Lack was designated to do

        10       this.  I believe he is in the Law Library now

        11       doing some research and he will be here very

        12       shortly and if you will just give us a moment, I

        13       think you will be amazed by what he has to

        14       recite in relation to it.

        15                      Please get Senator Lack on the

        16       phone.  (Pause).

        17                      Mr. President, it's my

        18       understanding that this may take a little more

        19       research than we may be able to accomplish in a

        20       short time frame, so if we may temporarily lay

        21       this bill aside.

        22                      ACTING PRESIDENT KUHL:  Lay the

        23       bill aside temporarily.











                                                             
10140

         1                      SENATOR BRUNO:  Mr. President,

         2       Senator Trunzo apparently had been studying this

         3       without my knowledge for weeks and he is now

         4       rising to this occasion, so I would ask that you

         5       recognize him for a full explanation.

         6                      Thank you.

         7                      ACTING PRESIDENT KUHL:  We won't

         8       lay the bill aside temporarily.  The Chair

         9       recognizes Senator Trunzo for an explanation.

        10                      SENATOR TRUNZO:  It's a very

        11       simple explanation.  Evidently has to do with

        12       some woman who used to work for Ways and Means

        13       in the Assembly who, on January 6th of 1969, for

        14       reasons -- for whatever reasons, just failed to

        15       elect to participate in what we all had as the

        16       reopener of '88, and so that basically that's

        17       what it is, it's to reopen it for one individual

        18       to get into the 80-A system.  I have no idea who

        19       she is or what it's all about but that basically

        20       is what the bill does.

        21                      ACTING PRESIDENT KUHL:  Senator

        22       Waldon.

        23                      SENATOR WALDON:  Thank you very











                                                             
10141

         1       much, Mr. President.

         2                      Senator Trunzo, would you be kind

         3       enough to edify me a bit? I did read this and

         4       there's a portion of this bill which speaks to

         5       service time being folded into, meaning military

         6       service time being folded into the overall time

         7       of the employee if he or she qualifies, and I

         8       was wondering, is that your understanding of the

         9       bill that someone who put four years, good

        10       years, I think it's three years but not more

        11       than three, and that that could be folded into

        12       the time?

        13                      SENATOR TRUNZO:  My understanding

        14       is she works for the Assembly, had a lapse in

        15       service and did not choose at the time.  She

        16       thought she was accepted into the 80-A and

        17       apparently was not and it recently has been

        18       discovered, and she was told by Ways and Means

        19       back in those days that she didn't have to do

        20       anything and there she was in 80-A, and then it

        21       was found out she was not.

        22                      I mean it's a simple explanation,

        23       you know, but done by the Assembly Ways and











                                                             
10142

         1       Means Committee.  Even the fiscal note is done

         2       by them.

         3                      ACTING PRESIDENT KUHL:  Senator

         4       Waldon.

         5                      SENATOR WALDON:  I have one more

         6       question.

         7                      ACTING PRESIDENT KUHL:  Senator

         8       Trunzo yield to one more question?

         9                      SENATOR TRUNZO:  Yes.

        10                      ACTING PRESIDENT KUHL:  Senator

        11       yields.

        12                      SENATOR WALDON:  Senator Trunzo,

        13       I apologize if in any way I put you on the spot

        14       with this explanation, but if it was more than

        15       just one employee who had qualified under this

        16       explanation, but it was another employee.  Could

        17       that person then qualify under this equation,

        18       under this proposal?

        19                      SENATOR TRUNZO:  Well, as I

        20       understand this was a unique proposal in itself

        21       and I'm sure if something else happened, someone

        22       else, that another piece of legislation would

        23       have been appropriate.











                                                             
10143

         1                      SENATOR WALDON:  All right.  What

         2       you're saying that would have to be a separate

         3       act, could not be this act?

         4                      SENATOR TRUNZO:  Can't open up

         5       for you.  Sorry.

         6                      ACTING PRESIDENT KUHL:  Secretary

         7       will read the last section.

         8                      Senator Leichter.

         9                      SENATOR LEICHTER:  Mr. President,

        10       I'm sorry but this is garbage time and I guess

        11       it's the end of the session and we're really

        12       seeing the sort of bills that shouldn't be

        13       before us, and I don't know who this particular

        14       individual is.  I'm at least glad to know that

        15       we've identified her in some ways because I

        16       asked Senator Trunzo before.

        17                      I've been here a number of years

        18       and others have, you have, and we've had many

        19       instances where we've been embarrassed by

        20       finding out that we voted pension benefits for

        21       people who really were not deserving.  I mean to

        22       put somebody into 80-A, because of his or her

        23       negligence they failed to apply when they should











                                                             
10144

         1       have and so on, I mean either we're going to

         2       have a pension system that's going to work in a

         3       fair, unbiased, uniform manner, or we're going

         4       to try to have all of these special benefit

         5       bills that we pass.

         6                      Now, some years ago Senator Gold

         7       took the lead on this, to try to set up a system

         8       whereby we as legislators did not have to pass

         9       on these and to turn this over to the

        10       comptroller and Senator Trunzo was extremely

        11       helpful in trying to do this.  We did it in

        12       part, we didn't do it fully, but I must say I

        13       feel very uncomfortable in voting on these sort

        14       of bills, particularly when you put somebody

        15       into that sort of a pension system and one

        16       hundred percent of the cost is now going to have

        17       to be borne by the people of the state of New

        18       York.

        19                      ACTING PRESIDENT KUHL:  Senator

        20       Gold.

        21                      SENATOR GOLD:  Yeah, Mr.

        22       President.  Thank you very much.

        23                      For -- when it comes to this











                                                             
10145

         1       issue, I have been, I hope, a proud partner of

         2       Senator Leichter, but at this point I'm going to

         3       differ with him on this particular bill, and the

         4       reason is that I would be less than candid with

         5       my colleagues in this house if I didn't say that

         6       there was a time back in the 1960s where I

         7       worked as a counsel, I sat at my desk, and if it

         8       wasn't for Joe O'Connor, may he rest in peace, I

         9       wouldn't even realize what was going on.  People

        10       were running around and I was lucky, I was a

        11       counsel, somebody was concerned about me.  They

        12       came, they explained the system and I signed

        13       up.

        14                      My understanding of this

        15       situation is that the person involved was -- who

        16       is -- was not informed properly, was specific

        17       ally told that she did not have to do something

        18       which under the law she would have had to do and

        19       the cost in this, I do not think is an

        20       outrageous cost.  It's within reason and I'm

        21       going to support it.  I think that Senator

        22       Leichter is right that we should have a system.

        23       I think Senator Trunzo is right, I supported his











                                                             
10146

         1       bill, but as Senator Trunzo and all of us have

         2       found, even though we have done the right thing,

         3       there have been people who have fallen through

         4       the cracks because every bill we pass is not

         5       perfect.  I think this is one of those people

         6       and I'm going to vote for it.

         7                      ACTING PRESIDENT KUHL:  Read the

         8       last section.

         9                      THE SECRETARY:  Section 2.  This

        10       act shall take effect immediately.

        11                      ACTING PRESIDENT KUHL:  Call the

        12       roll.

        13                      (The Secretary called the roll. )

        14                      ACTING PRESIDENT KUHL:  Call the

        15       negatives.  Announce the results.

        16                      THE SECRETARY:  Ayes 57, nays

        17       one, Senator Leichter recorded in the negative.

        18                      ACTING PRESIDENT KUHL:  The bill

        19       is passed.

        20                      Senator Bruno.

        21                      SENATOR BRUNO:  Mr. President,

        22       can we at this time take up Calendar Number

        23       1794.











                                                             
10147

         1                      ACTING PRESIDENT KUHL:  The

         2       Secretary will read the Calendar 1794 which is

         3       on Supplemental Calendar Number 3, page 1.

         4                      Secretary will read.

         5                      THE SECRETARY:  Calendar Number

         6       1794, substituted earlier today, by member of

         7       the Assembly McLaughlin, Assembly Print 4011-B,

         8       an act to amend the Social Services law.

         9                      ACTING PRESIDENT KUHL:  Secretary

        10       will read the last section.

        11                      THE SECRETARY:  Section 6.  This

        12       act shall take effect immediately.

        13                      ACTING PRESIDENT KUHL:  Call the

        14       roll.

        15                      (The Secretary called the roll. )

        16                      THE SECRETARY:  Ayes 58.

        17                      ACTING PRESIDENT KUHL:  The bill

        18       is passed.

        19                      Senator Bruno.

        20                      SENATOR BRUNO:  Mr. President,

        21       can we at this time take up Calendar Number

        22       1777.

        23                      ACTING PRESIDENT KUHL:  On the











                                                             
10148

         1       regular calendar, Calendar Number 70, in yellow,

         2       the bronze tint, page 4, the Secretary will read

         3       Calendar Number 1777.

         4                      THE SECRETARY:  On page 4,

         5       Senator Stafford moves to discharge from the

         6       Committee on Finance Assembly Bill Number 11319

         7       and substitute it for the identical Third

         8       Reading 1777.

         9                      ACTING PRESIDENT KUHL:  It's

        10       substituted.  Secretary will read the title.

        11                      THE SECRETARY:  Calendar Number

        12       1777, by the Assembly Committee on Rules,

        13       Assembly Print Number 11319, an act to amend the

        14       Real Property Tax Law.

        15                      ACTING PRESIDENT KUHL:  Senator

        16       Bruno.

        17                      SENATOR BRUNO:  Is there a

        18       message at the desk, Mr. President?

        19                      ACTING PRESIDENT KUHL:  There is.

        20                      SENATOR BRUNO:  Move we accept

        21       the message.

        22                      ACTING PRESIDENT KUHL:  Motion is

        23       to accept the message of necessity at the desk











                                                             
10149

         1       on Calendar Number 1777.  All those in favor

         2       signify by saying aye.

         3                      (Response of "Aye.")

         4                      Opposed nay.

         5                      (There was no response. )

         6                      The message is accepted.

         7                      Secretary will read the last

         8       section.

         9                      THE SECRETARY:  Section 2.  This

        10       act shall take effect immediately.

        11                      ACTING PRESIDENT KUHL:  Call the

        12       roll.

        13                      (The Secretary called the roll. )

        14                      THE SECRETARY:  Ayes 58 -

        15                      ACTING PRESIDENT KUHL:  Senator

        16       Leichter, to explain his vote.

        17                      SENATOR LEICHTER:  Yes, to

        18       explain my vote.

        19                      Mr. President, this is a very

        20       comprehensive bill which is very fondly called

        21       "the big ugly", has many provisions in it, some

        22       tax decreases but one important feature of it is

        23       that it finally frees the loft tenants, and I











                                                             
10150

         1       certainly want to congratulate them.  They've

         2       been held hostage far too long.  It's been

         3       really most unfortunate, even disgraceful, that

         4       they've been treated in this way, thousands of

         5       tenants in New York whose rights were played

         6       with as our convoluted budget process and end of

         7       the year process played out, so I'm going to

         8       have to vote for it.  As I dislike at least some

         9       of the tax reduction provisions, particularly

        10       the one that eliminates the mansion tax, I see

        11       no reason, no justification for doing that.

        12       That's going to cost 60, $70 million, and I just

        13       want to warn all of you, we're going to be back

        14       next year with a whopping deficit because of

        15       these tax cuts that we both willy-nilly without

        16       having the revenue for, and next year as you

        17       worry about what you're going to do for your

        18       local school districts and you worry about what

        19       you're going to do for transportation and you

        20       worry about how you're going to avoid tuition

        21       increases in SUNY and CUNY and take care of

        22       elderly people and so on, just think about all

        23       of these tax cuts that you have voted for which











                                                             
10151

         1       have helped us create that enormous deficit.

         2                      We had one this year.  We'll have

         3       a bigger one next year, but thank God we freed

         4       the loft hostages.

         5                      I vote in the affirmative.

         6                      ACTING PRESIDENT KUHL:  Senator

         7       Leichter will be recorded in the affirmative.

         8                      Senator Gold, to explain his

         9       vote.

        10                      SENATOR GOLD:  Yeah, just as a

        11       matter of order, Mr. President.  I think that

        12       you would -- should inform people that we do not

        13       allow demonstrations or anything along those

        14       lines so that when we finally hear the words

        15       that this bill is passed, we don't hear the

        16       people in the balcony saying, Free at last, free

        17       at last.  Thank God Almighty, we're free at

        18       last.

        19                      I vote yes.

        20                      ACTING PRESIDENT KUHL:  Senator

        21       Gold will be recorded in the affirmative.

        22                      Senator Marchi to explain his

        23       vote.











                                                             
10152

         1                      SENATOR MARCHI:  Mr. Chairman, I

         2       was chairman of Finance many years ago when this

         3       bill was put into place and I had a major role

         4       at that time and I was very happy to have done

         5       it.  I'm happy that this result is being

         6       achieved now and that we're doing what's about

         7       to happen.  It was just a question of time but

         8       you've been patient, and I know that you've made

         9       substantial investments in the improvement of

        10       that property so it inures to the benefit of

        11       that area of the city of New York and the state

        12       of New York.

        13                      So we rejoice in your -- in your

        14       realization and the hope that we would validate

        15       this procedure today.

        16                      ACTING PRESIDENT KUHL:  Senator

        17       Marchi will be recorded in the affirmative.

        18                      Announce the results.

        19                      SENATOR DOLLINGER:  Mr.

        20       President.  Mr. President.

        21                      ACTING PRESIDENT KUHL:  Senator

        22       Dollinger.

        23                      SENATOR DOLLINGER:  Just to











                                                             
10153

         1       explain my vote, Mr. President.

         2                      ACTING PRESIDENT KUHL:  Explain

         3       your vote.

         4                      SENATOR DOLLINGER:  I echo the

         5       remarks of Senator Leichter, Senator Gold and

         6       Senator Marchi, about the patience of people up

         7       above me.  I think what we ought to do is rename

         8       our gallery up above, the Loft and have the

         9       tenants move in and improve it.

        10                      ACTING PRESIDENT KUHL:  Senator

        11       Montgomery to explain her vote.

        12                      SENATOR MONTGOMERY:  Yes, Mr.

        13       President.

        14                      I rise too to say on behalf of my

        15       constituents and all the residents of the city

        16       of New York my apology and our apology for the

        17       process, and I can certainly say for them that

        18       it is at times as frustrating and disappointing

        19       to me as it must have been to them to see how we

        20       have used them for purposes of negotiating this

        21       or that, and many times we don't know what the

        22       this or that is, but we just know that we're in

        23       the -- we're being used as pawns, but that is











                                                             
10154

         1       the process and fortunately somehow in some way

         2       it comes together at times like this.

         3                      I would also say that for those

         4       of you who think that it is -- it most

         5       improbable that I would have lofts in my own

         6       district, I do and the residents of those lofts

         7       are extremely important constituents, not only

         8       to my district but to New York State and, as we

         9       have debated in this chamber in -- on prior

        10       occasions, the arts play a very important role

        11       for New York State citizens and citizens from

        12       around the world, both in terms of our economy

        13       as well as the aesthetics and the significance

        14       that it gives New York City and New York State.

        15       So it really is a wonderful opportunity to be

        16       able to vote yes for the residents.

        17                      Although I may disagree with some

        18       parts of the tax cut I certainly am proud that

        19       we have finally resolved this issue on behalf of

        20       the thousands of people, many of whom are

        21       artists, who reside in lofts in the city of New

        22       York and throughout the state.

        23                      ACTING PRESIDENT KUHL:  Senator











                                                             
10155

         1       Montgomery will be recorded in the affirmative.

         2                      Announce the results.

         3                      THE SECRETARY:  Ayes 58.

         4                      ACTING PRESIDENT KUHL:  The bill

         5       is passed.

         6                      (Applause from the gallery.)

         7                      ACTING PRESIDENT KUHL:  Senator

         8       Bruno.  Senator Bruno.

         9                      SENATOR BRUNO:  Mr. President,

        10       can we at this time take up Calendar Number

        11       1797.

        12                      ACTING PRESIDENT KUHL:  Have a

        13       little order in the house, please.  We'll return

        14       to Supplemental Calendar Number 3, page 1, ask

        15       the Secretary to read the title of Calendar

        16       Number 1797.

        17                      THE SECRETARY:  Calendar Number

        18       1797, substituted earlier today, by the Assembly

        19       Committee on Rules, Assembly Print 11254-A, an

        20       act to amend the Real Property Tax Law.

        21                      ACTING PRESIDENT KUHL:  Secretary

        22       will read the last section.

        23                      THE SECRETARY:  Section 11.  This











                                                             
10156

         1       act shall take effect July 1.

         2                      SENATOR LEICHTER:  Mr. President,

         3       Mr. President.

         4                      ACTING PRESIDENT KUHL:  Senator

         5       Leichter, on the bill.

         6                      SENATOR LEICHTER:  Yes, Mr.

         7       President.

         8                      This is a bill that enhances tax

         9       benefits given for real estate development and

        10       renovations in lower Manhattan.  It's really a

        11       giveaway to the real estate industry, and I

        12       appreciate saying that to some of you that's

        13       like putting red meat before a tiger.  That's

        14       probably all you need to do to be strongly in

        15       support of the bill, but the fact is that

        16       there's no justification for that.

        17                      We voted a special lower

        18       Manhattan district last year.  I think I was the

        19       only one who voted against it.  I said that it

        20       wasn't going to work, that really what this was

        21       going to do with that lower Manhattan district

        22       and the benefits we were providing was going to

        23       do is to subsidize luxury housing, conversion of











                                                             
10157

         1       commercial buildings in lower Manhattan to

         2       luxury housing paid for by the taxpayers.

         3                      That's precisely what has

         4       happened and while we were told at that time

         5       that there was going to be a commercial renewal,

         6       that hasn't occurred.  What this bill does now

         7       is to enhance and to increase the benefits that

         8       go for the commercial development because, as I

         9       pointed out last year, there were absolutely no

        10       credible studies that the benefits that we were

        11       providing were going to do anything for

        12       commercial renewal in lower Manhattan.

        13                      The fact is that New York City

        14       has a surplus of commercial real estate, of

        15       office space; much of it is midtown.  Much of it

        16       is in lower Manhattan, and these sort of bene

        17       fits, we're not going to bring new businesses

        18       into New York City and into Manhattan, so I hate

        19       to say it.  I think I was shown to be correct,

        20       there's no justification to give even further

        21       benefits now.  It is a giveaway to the real

        22       estate industry, and I would urge you to vote

        23       against that.











                                                             
10158

         1                      ACTING PRESIDENT KUHL:  Read the

         2       last section.

         3                      THE SECRETARY:  Section 11.  This

         4       act shall take effect July 1.

         5                      ACTING PRESIDENT KUHL:  Call the

         6       roll.

         7                      (The Secretary called the roll. )

         8                      ACTING PRESIDENT KUHL:  Record

         9       the negatives.  Announce the results.

        10                      THE SECRETARY:  Ayes 57, nays

        11       one, Senator Leichter recorded in the negative.

        12                      ACTING PRESIDENT KUHL:  The bill

        13       is passed.

        14                      Senator Bruno.

        15                      SENATOR BRUNO:  Mr. President,

        16       can we at this time return to reports of

        17       standing committees and I believe there's a

        18       report from the Rules Committee at the desk.  I

        19       would ask it be read at this time.

        20                      ACTING PRESIDENT KUHL:  Return to

        21       reports of standing committees, ask the

        22       Secretary to read the Rules report.

        23                      THE SECRETARY:  Senator Bruno,











                                                             
10159

         1       from the Committee on Rules, reports the

         2       following bill directly to third reading:

         3                      Senate Print 5097-C, by Senator

         4       Spano, an act to amend the Retirement and Social

         5       Security Law.

         6                      ACTING PRESIDENT KUHL:  Motion to

         7       accept the report of the Rules committee.  All

         8       those in favor signify by saying aye.

         9                      (Response of "Aye.")

        10                      Opposed nay.

        11                      (There was no response. )

        12                      The Rules report is accepted.

        13       Senator Bruno.

        14                      SENATOR BRUNO:  Mr. President,

        15       can we at this time take up Calendar Number

        16       1805.

        17                      ACTING PRESIDENT KUHL:  Secretary

        18       will read.

        19                      THE SECRETARY:  Calendar Number

        20       1805, by Senator Spano, Senate Print 5097-C, an

        21       act to amend the Retirement and Social Security

        22       Law.

        23                      ACTING PRESIDENT KUHL:  Secretary











                                                             
10160

         1       will read the last section.

         2                      SENATOR LEICHTER:  Mr. President.

         3                      THE SECRETARY:  Section 2.  This

         4       act shall take effect immediately.

         5                      ACTING PRESIDENT KUHL:  Senator

         6       Leichter.

         7                      SENATOR LEICHTER:  Senator here

         8       to respond?

         9                      SENATOR VELELLA:  I believe

        10       Senator Spano is assisting Senator Lack in his

        11       research and, in his absence, I will try to

        12       answer any questions as well as I can do.

        13                      ACTING PRESIDENT KUHL:  Senator

        14       Velella will yield, Senator Leichter.

        15                      SENATOR LEICHTER:  Yes, Senator,

        16       as I read this bill, it makes certain

        17       presumptions as to disability of firemen in the

        18       city of New York or maybe firemen throughout the

        19       state of New York, I don't know.  Both firemen

        20       and police, is that right?  Is that correct?

        21                      SENATOR VELELLA:  Yes, Senator.

        22                      SENATOR LEICHTER:  And one of the

        23       presumptions is that on disability if that











                                                             
10161

         1       policeman or that fireman is found to be

         2       suffering from melanoma or prostate cancer and

         3       he was healthy at the time that he entered the

         4       service, then it's deemed to be service-related

         5       and upon retirement that police officer or that

         6       fireman would get the pension benefits of -

         7       that are -- that goes with disability yet, is

         8       that correct?  Is that correct?

         9                      SENATOR VELELLA:  No, it is not.

        10                      SENATOR LEICHTER:  Would you

        11       explain that.

        12                      SENATOR VELELLA:  You said deemed

        13       to be.  It was a presumption, and being the

        14       scholarly attorney that you are, you know if

        15       it's a presumption it is rebuttable.

        16                      SENATOR LEICHTER:  O.K. Senator,

        17       it is my understanding that you get melanoma

        18       ordinarily from being in the sun.  Is there

        19       something about being a fireman who spends a

        20       good deal of the time in the firehouse that

        21       subjects him to melanoma more than other people,

        22       people who are not serving as firemen?

        23                      SENATOR VELELLA:  I would answer











                                                             
10162

         1       that by saying that, if we knew what caused

         2       cancer, we would all be a lot better off.  There

         3       are a lot of theories and a lot of

         4       possibilities.  Certainly the firefighters and

         5       the people who deal with emergency situations

         6       inhale a great deal of carcinogenics, are

         7       exposed to a lot of problems that the average

         8       person are not exposed to, and I believe that

         9       that justifies the presumption that their injury

        10       or their malady may have been job-related.

        11       However, if someone can show that there are

        12       other factors such as heavy smoking, that also

        13       might be a problem.  A lot of other factors that

        14       can be competitive to the presumption and rebut

        15       that presumption, but the board would make the

        16       determination.

        17                      SENATOR LEICHTER:  Right.  Mr.

        18       President, if Senator Velella continues to

        19       yield.

        20                      ACTING PRESIDENT KUHL:  Senator

        21       Velella, will you continue to yield?

        22                      SENATOR LEICHTER:  Senator, I

        23       think you said there is no scientific proof











                                                             
10163

         1       whatsoever, and really my question is to you in

         2       the absence of scientific proof, how can we make

         3       that presumption?

         4                      SENATOR VELELLA:  I guess,

         5       Senator, that's why we're saying it's a

         6       presumption and not as you have stated deeming

         7       it to be related.  We'll let the board make the

         8       medical analysis, take a look at the facts,

         9       examine the facts and make a decision.  All

        10       those facts will be before the board, the

        11       pension board that makes that decision, the

        12       medical evidence, the testimony, the history of

        13       the person, the predisposition, all of these

        14       things are weighed very carefully, by these very

        15       responsible members of this board.

        16                      SENATOR LEICHTER:  Mr. President,

        17       if Senator Velella will continue to yield.

        18       Senator, I was going to suggest that you join

        19       Senator Lack in doing the research, but -

        20                      SENATOR VELELLA:  I'm trying to

        21       pinch-hit for one Senator that's very knowledge

        22       able on this and I may not be doing as good a

        23       job as if he were here to do it himself.











                                                             
10164

         1                      SENATOR LEICHTER:  Senator, I'm

         2       particularly interested in, if you'd be good

         3       enough to yield, what relationship there

         4       possibly is to being a fire officer or being a

         5       police officer and prostate cancer.  Who has

         6       ever shown that there is any connection?

         7                      SENATOR VELELLA:  Senator, if -

         8       if we could only identify what it is that causes

         9       that, we'd all be better off.  Certainly you and

        10       I would love to see the definite answers as to

        11       what caused these problems.  However, best we

        12       can do is evaluate the medical knowledge that we

        13       have available, make a decision based on the

        14       facts, the medical testimony, and then we can

        15       make a decision.  That board can make that

        16       decision.

        17                      What causes it?  Nobody knows,

        18       but there are some good medical presumptions

        19       that have to be weighed and evaluated.

        20                      SENATOR LEICHTER:  Senator

        21       Velella, I was under the presumption that we who

        22       now spend a good deal of our time sitting in

        23       chairs would be subject to that terrible -











                                                             
10165

         1                      SENATOR VELELLA:  Yes.

         2                      SENATOR LEICHTER: -- condition,

         3       rather than a fire officer.  Are you going to

         4       put in a bill to deal with that presumption that

         5       if we get prostate cancer some time, that it's

         6       subject to our work?

         7                      SENATOR VELELLA:  I may not think

         8       that sitting -- yes, Senator, I may not think

         9       sitting in a chair in an inactive mode as much

        10       as you do would cause that type of cancer.

        11       However, I do think, when you're out on these

        12       emergency situations where you're exposed to not

        13       just gases but contaminants, cleaning up

        14       pollution problems, all of the things that our

        15       emergency medical service people are exposed to,

        16       I think there's a pretty good presumption

        17       there.

        18                      Thank you, Senator.

        19                      SENATOR LEICHTER:  Senator, just

        20       one more question.

        21                      ACTING PRESIDENT KUHL:  Senator

        22       Velella yield to one more question?

        23                      SENATOR LEICHTER:  Senator, one











                                                             
10166

         1       more question.

         2                      ACTING PRESIDENT KUHL:  Senator

         3       Velella.

         4                      SENATOR VELELLA:  Yes, Senator.

         5                      SENATOR LEICHTER:  Can you tell

         6       me what it is that the nature of being a police

         7       officer that would cause or maybe some causal

         8       connection between being a police officer and

         9       urinary problems which you also happen to make a

        10       presumption?

        11                      SENATOR VELELLA:  Well, Senator,

        12       in the words of one of our colleagues, Senator

        13       Oppenheimer, where there's smoke there's fire

        14       and maybe members of the campaign can remember

        15       that.

        16                      ACTING PRESIDENT KUHL:  Secretary

        17       will read the last section.

        18                      SENATOR VELELLA:  And, Senator,

        19       when the fact is that our New York State Police

        20       have the highest incidence of urinary tract

        21       cancers because of the job that they do when

        22       there's an emergency, they're right there

        23       whether it be toxic spills, whether it be fires,











                                                             
10167

         1       whether it be buildings burning, plastics,

         2       whatever those kinds of problems are, the

         3       contaminants that they're exposed to, it is

         4       reasonable to believe cause those cancers.

         5                      Thank you, Senator.

         6                      SENATOR LEICHTER:  I want to

         7       thank you.  My colleague answering that question

         8       says you get a lot of free coffee, and that may

         9       be the cause.

        10                      SENATOR VELELLA:  Well, they take

        11       anything free, maybe.

        12                      ACTING PRESIDENT KUHL:  Have a

        13       little order in the house.

        14                      Senator Leichter.

        15                      SENATOR LEICHTER:  Mr. President,

        16       I -- I think this session has clearly run its

        17       course and, as I said, I mean this is obviously

        18       garbage time, and I'm sorry that I maybe take

        19       this -- these sort of bills too seriously in

        20       order to have the jocular and casual approach

        21       that my friend here has, but we are voting on

        22       bills where we're responsible on it.  I mean we

        23       are providing millions of dollars in benefits,











                                                             
10168

         1       disability benefits, that may cost the city of

         2       New York a great deal of money.  The very least

         3       I think we have some obligation to show that

         4       there's a causal relationship between the work

         5       that these people do and the disability.

         6                      Let me say I think the

         7       firefighters are wonderful.  They're terrific

         8       people.  If we want to say that a firefighter

         9       has loss of hair that is related to his job and

        10       we're going to compensate him or if they get

        11       wrinkles after 20, 25 years for worrying about

        12       their jobs, we're going to compensate them, then

        13       let's put it on the -- let's do it openly and

        14       let's just say we're going to increase their

        15       pensions because these are very valuable members

        16       of the public service, but to do it in this

        17       underhanded way, I don't think does any credit

        18       to them or does any credit to us.

        19                      I don't think it's a serious

        20       bill, Mr. President.

        21                      ACTING PRESIDENT KUHL:  Secretary

        22         will-

        23                      SENATOR GOLD:  Mr. President.











                                                             
10169

         1                      ACTING PRESIDENT KUHL:  Senator

         2       Gold.

         3                      SENATOR GOLD:  Yeah, Mr.

         4       President.  I won't be more than 25 seconds,

         5       but, Senator Leichter, I appreciate your

         6       position, seriously, but in the world that we

         7       live in today where the press is always looking

         8       for sound bites or whatever, you made one

         9       comment, and I know at least one member of the

        10       press who picked it up and I think it should be

        11       dealt with, and you said that -- are you saying,

        12       Senator Velella, that firefighters who spend

        13       most of their day sitting around the firehouse

        14       and in all fairness I understand how you used

        15       it, I don't appreciate the way some pressmen use

        16       it.  Whether you are one way or another on this

        17       bill, I mean fire fighting is one of the most

        18       dangerous occupations.

        19                      We all owe these people a great

        20       deal of gratitude, and it is very simplistic for

        21       anybody in the press to write that these people

        22       just sit around the firehouse all day, and I

        23       know, Senator Leichter, you respect them, I











                                                             
10170

         1       respect them.  I hope the press does also.

         2                      ACTING PRESIDENT KUHL:  The

         3       Secretary will read the last section.

         4                      THE SECRETARY:  Section 2.  This

         5       act shall take effect immediately.

         6                      ACTING PRESIDENT KUHL:  Call the

         7       roll.

         8                      (The Secretary called the roll.)

         9                      ACTING PRESIDENT KUHL:  Record

        10       the negative votes.  Announce the results.

        11                      THE SECRETARY:  Those recorded in

        12       the negative on Calendar Number 1805 are

        13       Senators Leichter, Montgomery, Rath and Wright.

        14       Ayes 54, nays 4.

        15                      ACTING PRESIDENT KUHL:  The bill

        16       is passed.

        17                      Senator Bruno.

        18                      SENATOR BRUNO:  Mr. Bruno, can we

        19       at this time return to the order of messages

        20       from the Assembly.  I believe there is an

        21       Assembly hand-down.

        22                      ACTING PRESIDENT KUHL:  There is

        23       a message from the Assembly.  Ask the Secretary











                                                             
10171

         1       to read.

         2                      THE SECRETARY:  Calendar Number

         3       1806, by the Assembly Committee on Rules,

         4       Assembly Print 11226, an act to amend the

         5       Retirement and Social Security Law.

         6                      ACTING PRESIDENT KUHL:  On motion

         7       of Senator Bruno and with unanimous consent, the

         8       rules are suspended and the bill is ordered to

         9       third reading.

        10                      Ask the Secretary to read the

        11       title.

        12                      THE SECRETARY:  An act to amend

        13       the Retirement and Social Security Law.

        14                      ACTING PRESIDENT KUHL:  Read the

        15       last section.

        16                      THE SECRETARY:  Section 2.

        17                      SENATOR LEICHTER:  Just hold a

        18       minute.

        19                      THE SECRETARY:  This act shall

        20       take effect immediately.

        21                      ACTING PRESIDENT KUHL:  Before we

        22       read the last section, there is a home rule

        23       message at the desk.  I'll ask the Secretary to











                                                             
10172

         1       read the last section.

         2                      THE SECRETARY:  Section 2.  This

         3       act shall take effect immediately.

         4                      ACTING PRESIDENT KUHL:  Call the

         5       roll.

         6                      (The Secretary called the roll. )

         7                      THE SECRETARY:  Ayes 58.

         8                      ACTING PRESIDENT KUHL:  The bill

         9       is passed.

        10                      The Chair recognizes Senator

        11       Connor.

        12                      SENATOR CONNOR:  Thank you, Mr.

        13       President.  I rise to make a closing statement.

        14       It seems a little bit like deja vu.  About a

        15       month ago when we did this, I'm glad we're doing

        16       it again, Senator Bruno, because I forgot to say

        17       some things this time and no, you can make up

        18       for it, although I don't know how much interest

        19       there is.  I noticed not even the loft tenants

        20       are here to hear this any more.

        21                      But this has indeed been a

        22       curious session.  We were presented in December

        23       with a Newt Gingrich-like budget by the











                                                             
10173

         1       Governor, cuts to health care, cuts to

         2       education, cuts to programs to help workers,

         3       children and, by the way, the timing of it, as

         4       it's July 12th, I'm really happy he submitted it

         5       early.  If he hadn't submitted it on December

         6       15th, I can't imagine when we would have

         7       finished work on it.  Today is the 13th, that's

         8       right.  Today was the beginning of my family

         9       vacation.  My wife sends you our greetings from

        10       the hurricane seashore.

        11                      But the -- we've now seen that

        12       transformed in all seriousness, and we've had

        13       our partisan differences, but I think on the

        14       part of the Legislature there was a real

        15       bipartisan effort to make that a realistic

        16       moderate budget, to walk away from the extremist

        17       type of Republicans in Washington and to provide

        18       a budget that met the needs of the people of the

        19       state of New York, and I congratulate all my

        20       colleagues in both parties in both houses for

        21       doing that.

        22                      In doing that, of course, this

        23       house passed a budget, its own version, which











                                                             
10174

         1       repudiated the Governor by spending $800 million

         2       more.  The Assembly passed its version, both

         3       passed it unanimously, passed it unanimously,

         4       people in both parties voted for that, that

         5       spent more than the Governor because we had real

         6       needs.

         7                      Earlier in this session, my

         8       friends in the Democratic Conference called for

         9       a value-based budget that recognized values, the

        10       future, education, job development, worker

        11       retraining, providing for the elderly,

        12       maintaining a first class health care system and

        13       meeting our governmental responsibilities.  In

        14       every one of these categories, this budget and

        15       the actions in this last week have reflected

        16       that.

        17                      In the last category, reforming

        18       our government, we have a long way to go.  We've

        19       taken many steps backwards in the secrecy and

        20       lack of openness in this budget process.  On the

        21       other hand, with respect to ballot access we've

        22       taken, in all fairness, a pretty decent step

        23       forward in providing for democracy with a small











                                                             
10175

         1       "d".

         2                      In the other categories, we've

         3       done a NYPHRM bill.  We've done Medicaid

         4       restorations which recognize that health care is

         5       important to all New Yorkers.  We've provided

         6       more funds for education and higher education,

         7       and we've certainly provided for our children's

         8       future.

         9                      I want to thank all my colleagues

        10       in the Democratic Conference.  I want to thank

        11       those members who held the hearings we held

        12       earlier on the criminal justice system and the

        13       criminal justice proposals that the Governor

        14       made, all of which have been soundly rejected by

        15       the Legislature.

        16                      I want to thank those who held

        17       the higher education hearings.  Senator Stavisky

        18       who has been ill much of this session, and all

        19       the rest of my colleagues here who filled in for

        20       him in some of these -- most of these hearings

        21       around the state.  I think the budget reflects

        22       the kind of need that these hearings came up

        23       with.











                                                             
10176

         1                      As we enter into a -- of course,

         2       I want to once again thank Senator David

         3       Paterson, my more than able deputy, whose humor,

         4       wit and intellect is just superb, and I think

         5       we've all enjoyed.  He's ably assisted, of

         6       course, by Senator Stachowski and as we now

         7       complete the budget, I can now say thanks to

         8       Senator Gold, our ranking on Finance, who has

         9       been of great assistance to me both personally

        10       as leader and, of course, the chair of our

        11       Conference, Senator Mendez, and the rest of the

        12       members of the Senate Democratic Conference.

        13                      What I for got to say last time

        14       because I wanted to keep them working is I want

        15       to thank my staff, my counsel, Michael Boxley,

        16       John Ewashko, Secretary of Finance, Amy Solomon,

        17       chief of staff, my secretary and all the rest of

        18       my staff, all of whom function under these last

        19       few days with no sleep, all right, and, of

        20       course, Peter Slocum, my press secretary, and

        21       policy adviser.

        22                      All the staff functioned on both

        23       sides, I think, with very little sleep, had very











                                                             
10177

         1       little time certainly on our side to analyze

         2       legislation, and did a great job.

         3                      As we enter into now the very

         4       political silly season, I want to wish all of

         5       you a -- of course, want to thank Senator Bruno

         6       for once again these -- these absolute

         7       courtesies, and I enjoyed working with him.  The

         8        -- I do want to thank all of my colleagues here

         9       and wish you all a great summer.  I wish all of

        10       you great health for the rest of the year.  I

        11       wish all of you success in your outside

        12       endeavors.  And I wish some of you great luck in

        13       November.

        14                      But -- so look at him, huh? But

        15       unfortunately, we set some records this year,

        16       the latest budget ever.  That's something we

        17       don't, as part of this system I'm certainly not

        18       proud and I think we must do much, much better

        19       in the future.  We must heed the call of

        20       Governor Pataki in his first State of the State

        21       address and in his campaign that we have an open

        22       budget process, that we open it up to all the

        23       members of the Legislature and more importantly











                                                             
10178

         1       to public scrutiny so the public can be heard.

         2                      I'm disappointed that the

         3       Governor in his "Sophomore slump" year not only

         4       didn't accomplish those goals he set for himself

         5       but, in fact, ended up taking part in a highly

         6       secretive process which resulted in record

         7       lateness, record disappointment on the part of

         8       the public and all those who were concerned

         9       about certainly our localities and certainly all

        10       those others concerned about New York's fiscal

        11       situation.

        12                      Mr. President, thank you very

        13       much for your courtesies.  I hope you all have a

        14       great summer.

        15                      ACTING PRESIDENT KUHL:  Senator

        16       Bruno, to close.

        17                      SENATOR BRUNO:  Thank you very

        18       much, Mr. President.  Thank you, Senator Connor,

        19       for your very gracious remarks.

        20                      I think many of us that have

        21       experienced this year would -- could categorize

        22       it in any number of ways.  Certainly curious, as

        23       the Senator does, would fit.  I'd like to











                                                             
10179

         1       categorize what we have done this year as out

         2       standing, productive and people will focus on

         3       that this is a late budget, but it's much better

         4       to focus on what is in the budget than when it

         5       passes.

         6                      What is in this budget? It

         7       continues the growth, continues the prosperity

         8       for the people of this state that started last

         9       year with the leadership of Governor George

        10       Pataki, with we in the Legislature as partners,

        11       and this state is turning around, and we are

        12       headed in the right direction.  All of us here

        13       can be proud of what we've done.  We don't have

        14       to apologize for anything.

        15                      Is this a perfect system that we

        16       are involved in? It certainly is not.  Will we

        17       all work continually to improve it? I hope so

        18       and I'd pray so, because that's what our

        19       business is all about.  Continual re

        20       adjustment, improvement, and we're doing that.

        21       We are getting there.

        22                      We have a budget that cuts

        23       spending second year in a row.  First time in 51











                                                             
10180

         1       years spending less than the previous year in

         2       the general fund.  Cut taxes, second year in a

         3       row, most massive tax cuts in the history of

         4       this state, and the largest tax cuts throughout

         5       the United States last year, continued this

         6       year.  Rescinding the property tax that got to

         7       be, for better or worse, called "the Cuomo tax"

         8       on properties primarily in New York City, that

         9       is being rescinded in this budget and that will

        10       be one of the most productive things that will

        11       happen to the people of this state.  That would

        12       be the flagship of what has happened in tax cuts

        13       throughout this country.

        14                      So we can be proud of what we've

        15       done, not of the whole process because, again,

        16       there are flaws, there are flaws in the budget

        17       process.  We'll work together trying to fix

        18       that.  We'll work together so that we don't

        19       repeat some of our mistakes next year.

        20                      We don't do anything in this

        21       chamber by ourselves.  I know that.  I can't

        22       function without my colleagues here in the

        23       Majority; I can't function without my colleagues











                                                             
10181

         1       in the Minority, so we in the Majority will do

         2       our best to keep you in the Minority, but we

         3       will do that in a good-natured way as we go

         4       really and leave the chamber to another phase of

         5       all of our lives that hopefully will be

         6       productive for all of us as we relate to the

         7       people that we represent, and this is a good

         8       season.  It's time for us to get out and talk to

         9       the people that send us here to represent them

        10       to do the serious work of government, and all of

        11       us can be proud of what we've done, and I do

        12       want to say thank you to many of the people who

        13       are in this chamber, many that aren't here for

        14       helping me function and helping us in the

        15       process, and sitting in front of me Chairman of

        16       Finance Ron Stafford who spends days, nights,

        17       week ends in this process helping make it

        18       happen, ably assisted by Abe Lackman that is

        19       getting to be legendary around here and in this

        20       state.  I didn't say "infamous", I said

        21       legendary, and all of his staff that assists him

        22       so well, and when I realize the hours that

        23       people put in, the days and going through week











                                                             
10182

         1       ends, believe me, the people of this state, we

         2       are well served.  So I say thank you.

         3                      My Deputy Majority Leader on my

         4       right who sits here and functions and helps us

         5       in every way that he does and can:  Dean, I

         6       thank you very, very much for that, and for all

         7       of my colleagues here that chair committees and

         8       just work so hard to make us as productive as we

         9       have been this year in serving the people of the

        10       state, and Owen Johnson, who is in the high

        11       leadership position, in assisting us in more

        12       ways than I can relate, and Tim Collins, Dave

        13       Dudley, our executive counsels, who again just

        14       make it work and they make it work efficiently

        15       and effectively, and I could go on at great

        16       length, and I don't want to embarrass them or

        17       any of the others like my chief of staff Steve

        18       Boggess who just has been with me and in my life

        19       for more years than he wants to remember, but

        20       it's about 20, and that's as long as I have been

        21       in the Legislature, so I thank him for that.

        22       Pat Stackrow, my executive assistant, that works

        23       so hard to make everything run smoothly in the











                                                             
10183

         1       office and John McArdle, our director of

         2       communications, who helps us all communicate as

         3       well as we do with our publics, and Marcia

         4       White, my press secretary, I thank her for

         5       putting up with me, putting up with you and

         6       putting up with the press.

         7                      Dean, who did I forget in

         8       assisting me?  If I forgot anyone, it is my

         9       deputy's fault and he'll take full

        10       responsibility for that.  And Senator Randy

        11       Kuhl, who has presided, as you all know, with

        12       such great diligence and diplomacy, Randy, we

        13       all thank you in this chamber for helping us

        14       function so smoothly.

        15                      (Applause)

        16                      ACTING PRESIDENT KUHL:  There

        17       will be no demonstrations in the chamber.

        18                      SENATOR BRUNO:  Please bring the

        19       chamber back to order, Mr. President.  Bill

        20       Dougherty has been with us for so many years and

        21       he has just helped us in so many ways.  He is

        22       leaving us this year and taking early retirement

        23       and we're going to miss Bill.  Where is Bill?











                                                             
10184

         1       We're going to miss Bill, and we appreciate your

         2       long service here, and thank you very, very

         3       much.

         4                      You all know all of the rest of

         5       the things that we have done like restructuring

         6       the hospital reimbursement rates, the bond

         7       issue, managing managed care, managing Medicaid

         8       through managed care.  We've done a lot of good

         9       things.  As we go forward, we'll talk about

        10       those good things and we'll meet the people out

        11       there, and I know we're all anxious to do that

        12       and I want to, as I close, thank Governor George

        13       Pataki for his leadership, for his cooperation,

        14       and his staff that surrounds him, all of them,

        15       for all of the work that they have done to help

        16       us in this process and in getting us to where we

        17       are.

        18                      Some things are difficult, some

        19       things are contentious, some things are

        20       confrontational, but when it's all said and done

        21       we debate and we do it sometimes good-naturedly,

        22       sometimes we do it more strenuously, more

        23       seriously, but we get there, and we recognize











                                                             
10185

         1       that we are colleagues.  We are colleagues in

         2       every way, and while we have differences we all

         3       share the opportunities that are out there to

         4       serve our constituency and we all want to do it

         5       as well as we can, and I recognize that and I

         6       think the people in this state recognize that.

         7                      So I thank you all in the chamber

         8       and I join Senator Connor in just wishing you

         9       happiness, health throughout the summer, stay

        10       safe and with all of us that will leave here,

        11       the mode of our lives will change as we will go

        12       from this cameraderie to some others that are

        13       out there who are watching us and eyeing us and

        14       thinking that they foolishly could do a better

        15       job than we and we will prove that between now

        16       and then, and we will be here, most of us, back

        17       in this chamber.  And I want to thank you,

        18       Dean.  Bill Sears, Senator Sears is not here, he

        19       is ill and Bill Sears is retiring at the

        20       conclusion of this session.  He will not rejoin

        21       us, and I thank you for reminding me.  Bill has

        22       served the people of this state and his district

        23       lots of years again in an outstanding way, so we











                                                             
10186

         1       are all indebted and we all consider him a

         2       friend and hopefully he will visit when he gets

         3       well and we'll have a chance to say some things

         4       about Bill and his service again.

         5                      So have a safe summer.  Have a

         6       happy summer, and I'm going to ask that all

         7       bills, Mr. President, be recommitted to Rules

         8       and -

         9                      ACTING PRESIDENT KUHL:  All bills

        10       recommitted.

        11                      SENATOR BRUNO:  -- there being no

        12       further business to come before the Senate, I

        13       would ask that we adjourn subject to the call of

        14       the Majority Leader and that intervening days to

        15       be legislative days.  Thank you, Mr. President.

        16                      ACTING PRESIDENT KUHL:  All bills

        17       will be directly recommitted.

        18                      (Applause)

        19                      Without objection, Senate stands

        20       adjourned subject to the call of the Majority

        21       Leader, intervening days to be legislative

        22       days.

        23                      (Whereupon at 5:30 p.m., the











                                                             
10187

         1       Senate adjourned. )

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